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GRTgaz 2020 STATEMENT OF NON-FINANCIAL PERFORMANCE TOGETHER, ENABLE A SECURE, AFFORDABLE ENERGY FUTURE THAT IS CLIMATE-NEUTRAL OVERVIEW OF CSR ACTION PLAN 2017-2020

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Page 1: GRTgaz 2020 STATEMENT OF NON-FINANCIAL PERFORMANCE · 2021. 5. 3. · CAP24 corporate project to achieving the targets specifi ed for certain UN Sustainable Development Objectives,

1 Statement of non-fi nancial performance GRTgaz

GRTgaz 2020

STATEMENT OF NON-FINANCIAL PERFORMANCE

TOGETHER, ENABLE A SECURE, AFFORDABLE ENERGY FUTURE THAT IS CLIMATE-NEUTRAL

OVERVIEW OF CSR ACTION PLAN 2017-2020

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2 32020Statement of non-financial performance GRTgaz2 32020Statement of non-financial performance GRTgaz

2020 will remain scarred by the Covid-19 pandemic across our society, our organisations, our individual lives. Looking beyond the health crisis, we need to collectively and individually take stock of the upheavals it has generated and the lessons we have learned, even if it means questioning our habits and certainties. The energy sector has not been immune to these questions nor to these choices of society, with the rise of progressive and occasionally contradictory forces, aiming to create new zero-carbon activities while preserving our security of supply and access to affordable energy.

For all these reasons, 2020 was a pivotal year for GRTgaz in our preparation for the future. We leave behind a period commencing after the second world war, during which the production of energy depended on unchanging fundamentals: access large underground reserves of coal, uranium, gas or petroleum and be able to deliver this production ever further to places of consumption. This era has come to an end. The combat against climate change, the circular economy, the diversity of our production methods, our regional focus, the complementary nature of electrical and gas systems, all represent a new field of restrictions and opportunities requiring us to build a new model.

The gas industry has initiated its transformation and it is now essential to speed up the process. GRTgaz has risen to the challenge in 2020, by defining its corporate purpose. This extends its public service role and proposes a new pact with its employees, shareholders, customers, and civil organisations, to ensure access to safe, sustainable, and affordable energy.

To deploy this corporate purpose in its roadmap, GRTgaz has initiated CAP24, its collective transformation plan for the next four years. It reflects a desire to believe in the pioneering spirit of GRTgaz employees to rise to the challenge of the “third gas revolution”, that of renewable gases and hydrogen.

This statement of non-financial performance closes this cycle and provides a review of the policies and resources deployed until 2020 to support our non-financial commitments and prepare the future. A new CSR action plan for 2021-2024 is now in effect. The plan is consistent with our corporate purpose and is a component of our strategy in its own right. GRTgaz is committed to producing its first integrated report in 2022.

Thierry Trouvé, Chief Executive Officer

Editorial

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52020Statement of non-financial performance GRTgaz

Editorial by Thierry Trouvé

1. 2020 news: corporate purpose and new CSR policy for 2021-2024

2. GRTgaz: French TSO contributing to energy safety and committed to future energy solutions

Page 6. 2.1. Key figures for 2020Page 11. 2.2. Our missionsPage 12. 2.3. Our customers and their expectationsPage 13. 2.4. Our governancePage 14. 2.5. Our challengesPage 16. 2.6. Our strategic responsesPage 18. 2.7. Our value generation model

3. GRTgaz and CSR

Page 20. 3.1. Our non-financial risks and opportunitiesPage 21. 3.2. Our non-financial performance 2017-2020

4. Safety, efficiency and ethics - core concerns for GRTgaz transmission activity

Page 28. 4.1. Network safetyPage 30. 4.2. Health & safety of employees

and service providersPage 32. 4.3. IT system securityPage 34. 4.4. Economic efficiency of service deliveredPage 36. 4.5. IndependencePage 37. 4.6. Ethics

5. GRTgaz - a committed player in the energy transition

Page 38. 5.1. Limiting the environmental impacts of GRTgazPage 38. 5.1.1. Reducing the GRTgaz carbon footprintPage 42. 5.1.2. Waste recovery and recycling Page 43. 5.1.3. Protection of biodiversity Page 45. 5.2. Supporting new gas uses and renewable

gas activitiesPage 45. 5.2.1. Development of gas mobilityPage 48. 5.2.2. GRTgaz, a committed player in the

development of renewable gasesPage 55. 5.2.3. Smart Grids and Open dataPage 56. 5.2.4. Open Innovation

6. Conducting business with stakeholders

Page 58. 6.1. Integration and acceptability of infrastructuresPage 60. 6.2. A responsible labour policyPage 60. 6.2.1. Promotion of diversityPage 62. 6.2.2. Career development and promoting

work/study programmesPage 63. 6.2.3. Labour relations and representative bodiesPage 64. 6.3. Gas transmission network serving collaborative

projects and customer satisfactionPage 66. 6.4. Responsible supplier relationshipsPage 68. 6.5. Promoting the image of gas to stakeholdersPage 70. 6.6. Dialogue and collaboration with stakeholders

7. Methods appendix

8. Report of Independent Third Party

Table of Contents

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6 72020Statement of non-financial performance GRTgaz

1. 2020 news: Corporate purpose and new CSR policy for 2021-2024

On 15 October 2020, an extraordinary general meeting of GRTgaz shareholders unanimously adopted the corporate purpose and integrated it in the articles of association.

This corporate purpose, supplemented by a manifesto built around five pillars, is a strong commitment from GRTgaz and will guide our actions and strategy for the long term. The new CAP24 corporate project (2021-2024) and the new GRTgaz CSR policy (2021-2024) will contribute to the operational deployment of our corporate purpose. The corporate purpose was developed over two years of extensive consultation work involving the employees and all categories of GRTgaz stakeholders associated with the project.

…BECAUSE WE ARE RESPONSIBLE PLAYERS, we design and operate energy infrastructures with environmental footprints that are increasingly exemplary. In this way we contribute to reducing the impact of the whole gas chain. We offer new perspectives with locally-produced renewable gases as well as hydrogen, and more generally decarbonisation solutions for energy uses. To manifest our ambition to be carbon-neutral.

3

...BECAUSE WE SERVE THE PUBLIC INTEREST, we organise trade and flows to ensure the continuity of supply of gas to all consumers and to balance the national and regional energy systems. We facilitate the use of ever more renewable gases with the same requirements in terms of safety, quality and competitiveness. To ensure the safety and performance of the energy system.

1

… BECAUSE WE ARE CONVINCED THAT THE ENVIRONMENTAL TRANSITION DEPENDS ON INNOVATION, we are committed to research, experimentation, to the development and diversification of our activities, to making daily progress and a greater contribution to facing the challenges of our clients, regions, and the whole planet. To stimulate initiatives which serve future generations.

2

…BECAUSE WE ARE GUARDIANS OF HUMAN VALUES, we are committed to a caring and stimulating work environment, where skills are developed and all diversities included, because the challenges of transformation and the requirement for performance must be compatible with individual and collective fulfilment. To blend well-being and performance, acting together for health, safety and quality of life at work for all.

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…BECAUSE WE ARE COMMITTED TO OUR STAKEHOLDERS, we work with regional players to co-build future solutions and reconcile the interests of as many as possible. We develop cooperation, ensure transparency of the positive and negative impacts of our activities, while providing all the essential data for forward planning and actions. To make our corporate purpose the focus of all discussions.

5

This corporate purpose drives us, the men and women of GRTgaz, to support the environmental transition and explore new areas of responsibility for the future...

Our day-to-day values: innovation, openness, responsibility, excellence, trust.

The corporate purpose of GRTgaz is built around five pillars

Together, enable a secure, affordable energy future that is climate-neutral

Statement of non-financial performance GRTgaz6

Together, enable a secure,

affordable energy future that is

climate-neutralDirect

customers

Renewable gas activity

Adjacent operators

Financial partners

Agricultural sector

Shipper customers

Producer customers

Regulator

Employees

Civil society (NGOs etc.)

AdministrationShareholders

Regions and communities

Suppliers

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8 Statement of non-fi nancial performance GRTgaz 2020 9

Consistent with the work done in 2019 to identify the UN sustainable development objectives (SDO) to which GRTgaz contributes, four such SDO are core activities and fundamental to the GRTgaz corporate purpose:

Inspired by its corporate purpose, GRTgaz revamped its CSR policy for 2021-2024. 50 internal and external stakeholders, including the stakeholder council, were interviewed as part of the new materiality assessment and analysis of non-fi nancial risks for GRTgaz in 2020. The Corporate Social Responsibility policy has been developed using the results of the materiality matrix, bringing together internal experts and

the stakeholder council on two occasions. It sets out the 10 commitments of GRTgaz to be completed by 2024 and 2030 for some. In the form of a 2021-2024 action plan, it will contribute alongside the new CAP24 corporate project to achieving the targets specifi ed for certain UN Sustainable Development Objectives, in particular SDO 13, 9, 7 and 17, which are the core fundamentals of our corporate purpose.

2. GRTgaz: French TSO contributing to energy safety and committed to future energy solutions*

CLEAN,AFFORDABLEENERGY

7

CLEAN,AFFORDABLEENERGY

7

INDUSTRY,INNOVATION ANDINFRASTRUCTURE

9

INDUSTRY,INNOVATION ANDINFRASTRUCTURE

9

MEASURESTO COMBATCLIMATE CHANGE

13

MEASURESTO COMBATCLIMATE CHANGE

13

PARTNERSHIPSTO ACHIEVEOBJECTIVES

17

PARTNERSHIPSTO ACHIEVEOBJECTIVES

17

CLEAN,AFFORDABLEENERGY

7 PARTNERSHIPSTO ACHIEVEOBJECTIVES

17GOOD HEALTHAND WELL-BEING3 GENDER

EQUALITY5 REDUCEDINEQUALITIES10

B / Rise to the challenge of the environmental transition with our employees and stakeholders

Commitment 5 / Encourage the development of skills, diversity and quality of life at work for our employees

Commitment 6 / Support our customers in their energy requirements and converting their activities to net zero carbon

Commitment 7 / Co-build sustainable energy solutions with local players

A / Support aff ordable net zero carbon

Commitment 1 / Reduce our carbon footprint

Commitment 2 / Speed up the energy transition by developing green gases

Commitment 3 / Enable access to aff ordable and sustainable energy

Commitment 4 / Grow sustainably

C / Conduct our business responsibly

Commitment 8 / Ensure the safety of people and infrastructures, and the continuity of our services

Commitment 9 / Conduct our business with suitable ethics and compliance

Commitment 10 / Protect the environment (excl. carbon) and biodiversity from the impacts of our activities

8 DECENT WORKAND ECONOMICGROWTH

8

INDUSTRY,INNOVATION ANDINFRASTRUCTURE

9 LIFE ONEARTH158 DECENT WORK

AND ECONOMICGROWTH

8

2.1. Key fi gures for 2020

employees 3,336

A market organiser with four customer categories: 151 gas shipper

customers(energy traders or suppliers)to end customers

726 active industrial customersincluding 13 natural gas-fi red electricity production plants

21biomethane producersinject their production into the GRTgaz network

2 distribution - transmission backhauls in service

5transformativevalues:innovation, openness, responsibility, excellence,trust

€389 M

2020 investments

€1,877 M

revenue (IFRS standard consolidated data, excluding Elengy)

19 distributorsconnected (DSO or local distributors)

A mission in the public interest governed by a public service agreement:

contribute to the energy security of France and Europe;

contribute to the eff orts to improve energy effi ciency and conservation, and to reduce emissions of greenhouse gases and pollution in France;

set an exemplary standard for environmental conservation;

support the development of renewable gas activities.

Major operator of industrial assets: designs, develops, maintains and operates 85% of the French grid.

32,519 km of pipelines

641 TWh transported

A network interconnected with the European networks and LNG terminals, of which 90% is in rural areas

26compressor stations in France

95% of nationalconsumption

Trustedthird party

GRTgaz is at the heart of gas market operations:operation of the TRF single marketplace,

data delivery, gas balance, development plan, etc. The activity is regulated by CRE,

the French Energy Regulatory Commission: fi xed access rates, verifi ed costs and investment

plans, and harmonised operating rules across all European gas infrastructures.

*The statement of non-fi nancial performance covers GRTgaz in France. For more information, refer to the Methods appendix (chapter 7, p. 70).

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112020Statement of non-financial performance GRTgaz10 2020

2.2. Our missions

PROMOTE THE DEVELOPMENT OF RENEWABLE GASES

95% of French natural gas consumption is serviced by GRTgaz, which develops, maintains and operates 85% of the national gas transmission network.

Its resilient and interconnected infrastructures supply gas distributors, industrial consumers and power plants. GRTgaz is a major player in regional energy security. In a context of energy transition, GRTgaz puts net zero carbon at the heart of its long-term strategy and places its social and environmental responsibility at the heart of its business model. Together with all its stakeholders, GRTgaz acts every day in the field to promote the development of renewable gases and the regional energy transition.

AN OPERATOR WITH REGULATED MISSIONS

GRTgaz operates in France under the oversight of the Energy Regulatory Commission (CRE). The CRE strives to ensure transparent and non-discriminatory access to gas infrastructures and contributes to determining access rules:

It determines the conditions of access to the transmission network.

It verifies the effectiveness of the costs borne by network users and approves the investment plans required to ensure the market operates correctly.

AN OPERATOR WITH PUBLIC SERVICE MISSIONS In France, the Energy Code governs the transmission of gas and sets out public service obligations for the natural gas TSO. The public service contract

binding GRTgaz reminds us of the importance of the safety of people and assets, and the guarantee of continuity of supply. In France, the network must be able to handle exceptionally cold periods (coverage of 2% risk, coldest day experienced twice a century), and enable the market to operate suitably, even when the grid is strained.

The public service contract focuses on the coordination role that GRTgaz must play in terms of security of supply to the French market but also to Europe. This document also confers on GRTgaz a strategic place in the energy transition, setting out the need to enhance the visibility and the role of the gas system. It underlines our desire to develop new renewable gas production activities (anaerobic digestion, pyrogasification, hydrothermal gasification, etc.), to prepare the way for the introduction of hydrogen and encourage new gas uses, especially in terms of mobility and zero net carbon in industry. Furthermore, the contract is leading GRTgaz to contribute to efforts to reduce greenhouse gas emissions and pollution emanating from the gas production chain.

The public service missions of GRTgaz also involve relations with customers and stakeholders. In all areas, GRTgaz strives to be a trusted partner to numerous stakeholders: gas consumers supplied by its network, energy market players (shippers and producers), local and regional players (communities, businesses, resident populations, civil organisations).

Transmission network (France and Germany)26 compressor stations (France)6 compressor stations (Germany) Participation in Megal (1,161 km of high-pressure pipelines)7 interconnections with adjacent networks4 interconnections with LNG terminalsDirection of natural gas flowAdjacent transmission and LNG terminal operators

Switzerland

GermanyUnited

Kingdom

France

Spain

Belgium

Yellow marker post showing location of gas pipeline

1

GRTgaz employee at Alfortville interconnection station

2

21

Gas transmission networks

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12 Statement of non-fi nancial performance GRTgaz

2.3. Our customers and their expectations

2.4. Our governance

14board membersare appointed by the annual general meeting of shareholders

9 representatives of the ENGIE group

3 representatives of Société d'lnfrastructures Gazières

2 independent board members

3board membersrepresenting employees

A commissioner from the French government, the CEO of GRTgaz, a representative of the central works council and the compliance director attend board meetings but have no voting rights (art. L.111-34 of the Energy code).

THE BOARD OF DIRECTORS HAS 17 MEMBERS, SEVEN OF THEM WOMEN

The investments committeeExamines investment policy and delivers an overall opinion on investment plans.

The audit committee Ensures that accounting methods are appropriate, examines and delivers an opinion on the accounts and fi nancial plans, evaluates the effi cacy and quality of the internal control process and examines signifi cant risks and commitments, in particular with regard to the provisions applicable to an independent transmission system operator.

The remuneration and selection committee Examines and delivers an opinion on the remuneration of the board members and the CEO, while consulting on candidates for these positions.

THREE ADVISORY COMMITTEES SUPPORT THE BOARD OF DIRECTORS

Established in 2016, the stakeholder council includes representatives from a variety of backgrounds – industry, agriculture, NGOs, specialists in the environment and biodiversity and experts in innovation, socio-economic development and the energy economy.

The council meets twice a year and meetings are attended by the CEO, the general secretary and the CSR director of GRTgaz.

The viewpoints of the stakeholder council supplement those of the internal councils and provide input for a diff erent outlook from

the perspective of civil society, expressing external opinions on the company’s corporate purpose and the fulfi lment of its social responsibility, and acting as a spur in favour of CSR.

THE STAKEHOLDER COUNCIL

Shippers Energy suppliers or traders under transmission contracts.They use GRTgaz services to supply consumers connected to the transmission and distribution grids or to supply gas to neighbouring countries. They expect simplifi ed and customised off ers and services, reliable data and minimal work impact.

Distributors DSOs or local distribution companies under connection and interface contracts.They use the GRTgaz transmission network to supply industrial and domestic consumers connected to the distribution grid, which account for 60% of gas consumption in France. Not only are they customers of GRTgaz, they are also adjacent operators and, as such, they work with GRTgaz to ensure that gas and metering data circulate properly between them.

Industrial consumers Industrial consumers under connection contracts.These are industrial operators from all sectors of activity, such as the food, chemical, paper and glass industries, but also electrical power plants which consume gas to produce electricity. Industry alone accounts for 40% of the gas consumed in France. GRTgaz proposes a dedicated commercial contact for the industrial sites, who will off er support in optimising facility performance and in their development and gas conversion projects for industrial and mobility uses.

Gas producers Industrial or agricultural operators under connection and injection contracts.They produce biomethane from their agricultural waste or fermentable organic matter and inject it into our network. GRTgaz assists them on their injection projects, ensuring that their installation is effi cient and cost-eff ective.

132020

GRTgaz organises the gas market for its four main customer categories:

151 shippers (energy suppliers or traders): GRTgaz routes and transmits natural gas on behalf of “gas shippers” to end consumers in the best possible conditions of safety, cost and reliability.

Industrial operators and distributors connected to its grid:GRTgaz supplies gas directly to 726 industrial sites in France, and to 19 distributors who then distribute this gas to end consumers, notably the domestic market.

Renewable gas producers: the development of decentralised production of renewable gases enables GRTgaz to connect a growing number of producers. From 12 in 2019 to 21 in 2020, they represent 698 GWh/year of production capacity.

THE EXECUTIVE COMMITTEEComprises fi ve Divisions:

Supply bringing together gas and a customer vision, building and delivering commercial solutions.

Performance of industrial systems and new technologies driving change resulting from emerging digital technologies to serve the strategic orientations of GRTgaz, especially in terms of the energy transition.

Strategy, public aff airs and regions, which guides strategic planning, especially as regards external growth and energy transition, supporting region-wide implementation through infl uence and communication.

Projects, covering the construction of gas infrastructures under the responsibility of GRTgaz.

Finance, purchasing and logistics, which contributes to the company’s performance through integrated management of issues surrounding fi nance, suppliers or real estate.

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14 152020Statement of non-financial performance GRTgaz

3

4

CHALLENGE NO. 2: GAS CONSUMPTION FORECAST TO TREND DOWNWARDSEnergy efficiency is a central lever of the energy transition. Whatever the scenario considered or the studies available, gas consumption will trend downwards, impacting the reservation of routing capacities, and therefore the revenue of our business. The trajectory of this decline remains uncertain at this time and is subject to multiple factors such as the carbon cost trends, the development of efficient uses of these gases and the ability of renewable gas producers to improve their competitiveness, and make the most of their positive externalities. In parallel, GRTgaz will need to economically and technically handle the growing volumes of these renewable gases. GRTgaz needs to adapt its industrial resources and continue its asset management and performance efforts to maintain its economic efficiency over time.

CHALLENGE NO. 3: DIGITALISING THE ENERGY SYSTEMThe development of new activities is now a reality, with the boom in biomethane, a renewable gas produced locally from fermentable waste, and the deployment of gas and biogas fuel in overland and sea transport. And tomorrow, other activities will be part of the landscape, such as gas from non-fermentable waste (via pyrogasification and hydrothermal gasification) or hydrogen. These transformations result in the decentralisation of gas production, which means we must rethink network management, design new facilities (injection stations, backhaul stations, chromatographs, etc.) and develop collaborative projects between producers, consumers and grid operators. In this respect, the Smart Grid can be considered as a blend of digital technology and energy infrastructures (electricity and gas) and, broadly, as the intersection between the digital and energy transitions.

CHALLENGE NO.1: TOWARDS ZERO-CARBON ENERGYThe climate and environmental emergency highlighted in several publications, including the latest report of the Intergovernmental panel on climate change (IPCC) published in 2019, is reflected in the National and European climate policy objectives which aim to massively reduce emissions by 2050 in line with the Paris Agreement. On this basis, the European Union now intends to turn this political commitment into a legal obligation to be carbon-neutral by 2050 and to reinforce climate objectives as part of a new Green Deal. Most Member States have announced objectives, along the lines of France, which is aiming for “zero net emissions” in 2050 under the terms of its national low-carbon strategy (SNBC) and the new Energy and Climate law. The multi-year energy programme (PPE) published by the French government in 2020, will structure the transition to a zero-carbon energy system. Although the consumption of fossil gas will therefore fall over time, renewable gases are part of the energy mix for the future - they feature in the long-term strategy of the European Commission and in France’s national low-carbon strategy -, because they meet certain uses that remain difficult to accommodate with electrical solutions (e.g long-distance heavy goods vehicles, sea and river vessels, certain industrial uses, etc.), and compensate for the intermittent nature of renewable electricity sources, while providing positive externalities for issues of land use planning, circular economy, waste management and ecological agriculture.

Besides climate change, local pollution - especially nitrogen oxides and fine particles - is a growing concern, as reflected by the proliferation of announcements of future citywide or district bans on polluting vehicles. This context can also favour the use of gas, as gas-powered vehicles are considered the least polluting (“Crit’air 1” level in France), as confirmed by the 2019 study published by IFP Énergies nouvelles (Ifpen)1. All these developments create a backdrop that will impel gas infrastructure operators to adapt and enable the integration of locally-produced, renewable gas activities, while securing the supply for these new uses and preserving competitiveness.

2.5. Our challenges

Anaerobic digestion plant

Details of a biomethane injection station

1

2

Gas co-generation plant in Serres de la Piogerie

3

Backhaul station Noyal-Pontivy, Brittany

4(1) www.ifpenergiesnouvelles.fr

The gas industry is facing three major challenges: Converting energy to net zero carbon, reducing gas consumption associated with progress in energy efficiency, adapting the energy system through digital technology.

1

2

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16 172020Statement of non-financial performance GRTgaz

Innovation, adaptation and cost control will be the watchwords for the coming transformations, with the aim of rising to the long-term challenges and ensuring the sustainability of the gas system, serving the energy transition, regions and customers.

In a fast-changing energy environment, in 2016 GRTgaz adopted a corporate project, GRTgaz 2020, targeting completion by 2020 and, putting social responsibility at the heart of its business model. This project depended on two key strategic pillars:

Be firmly committed to the energy transition. Be a recognised leader in European gas

infrastructures.

GRTgaz 2020 was built around three factors which are all success drivers: the men and women of the company, a business whose transformation is well underway, and strong relationships with our ecosystem of French and European partners. GRTgaz is convinced that gas energy will be a key energy transition vector for the regions and has developed promising solutions which put the natural gas transmission network at the heart of this revolution: “The network of all possibilities”.

OUR APPROACHGRTgaz is placing the path towards net zero carbon at the heart of its long-term strategy. It is working to ensure safe, clean and connected structures to achieve this objective. On this basis, projects to connect biomethane plants or NGV and bioNGV stations are being developed. GRTgaz is conducting work and investing in and with the gas industry to encourage the development of different renewable gas activities and their injection into the networks. In parallel, GRTgaz is helping its customers and the regional players to make the most of these opportunities so that they can achieve their objectives in terms of energy transition, waste treatment or clean mobility solutions. GRTgaz also strives to limit the environmental impacts of its activities, in particular by reducing its methane emissions. And to ensure its infrastructures remain competitive over time, cost optimisation and long-term asset management programmes such as the Amélior’ project are also being put in place.

To prepare a net zero-carbon future and handle the transformation of the gas market, GRTgaz has committed to internalising its R&D activities (RICE) as well as digital activities. GRTgaz is also preparing potential areas of diversification in support of the goals of the network of possibilities, and has put the Business Development department in charge.

The company is also focusing on innovation, marked in 2020 by the creation of an Innovation department, responsible for developing and fostering innovation in all its forms, as well as giving operational expression to the innovations that generate value for the company and its stakeholders.

1

Mechanical test hall, RICE Villeneuve-La-Garenne

1

RICE lab in Villeneuve-La-Garenne

2

Our 2050 vision: the network of possibilities

2050 Vision

2.6. Our strategic responses

The Research and Innovation Centre for Energy (RICE) RICE was established in 2018. The centre is a major player in research and innovation in the field of gas infrastructures, notably concerning their safety, performance and contribution to the energy transition. A hundred or so research scientists and technicians

work on RICE sites. It owns a portfolio of 74 categories of patent, representing approximately 400 industrial property rights enforceable in around 30 countries. It leads an open and collaborative innovation policy involving public and private sector partners. RICE participates in several European R&D programmes; it cooperates with

international research bodies such as the European Group for Gas Research (GERG), the Pipeline Research Council International (PRCI), etc. RICE delivers custom services and oversees programmes contributing to the emergence of new activities in such fields as renewable gases, energy storage or smart grids, but also in the use of new materials.

It is especially active in adapting infrastructures to these changes. This means that RICE contributes to energy transition projects developed by GRTgaz to develop biomethane, NGV, hydrogen, pyrogasification and hydrothermal gasification, as well as Smart Grids.

2

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18 192020Statement of non-financial performance GRTgaz

2.7. Our value generation model

Human Number of employees (FTE): 3,336 Number of apprentices: 267

Financial Capital & debt: €8.363 M

Industrial 32,519 km of pipelines (in France) 26 compressor stations 10,044 delivery/isolation points

Intellectual RICE: GRTgaz Research and Innovation Centre,

2 R&D sites in greater Paris

Natural 5,600 km of pipelines in protected natural spaces 28,780 tonnes of non-hazardous waste 641 tonnes of hazardous waste CO2 emissions (scope 1 and 2, 3 controllable):

815,000 TCO2

Societal Suppliers: €600 M in purchases in France

including €350 M from SME suppliers Number of "Concertation Gaz" consultations

with the market: 17 Number of memberships, partnerships,

sponsorships: 255

2020 RESOURCES

Human 197 new permanent contract hires 200 work/study trainees hired TF employees: 1.9 TF service providers: 6

Financial Revenue and Ebitda €1,877 M and €1,052 M Average cost of access to the gas transmission

network (Euro cents per kWh/day/year): 43

Industrial Investment in the grid: €389 M

including 23% on environment and safety Quantity of gas transmitted or delivered

to our customers: 641 TWh Number of incidents involving third-party

attacks on pipelines: 7

Intellectual 74 categories of patents, 400 Industrial

Property rights covering thirty or so countries Trained employee rate: 61%

Natural Reduction in methane emissions in relation

to 2016: -67% 698 GWh/day: biomethane capacities on

the network (21 sites connected) 985 stations converted to zero pesticides 98% of waste recovered

Societal 32 forward-looking projects initiated in

the regions since 2016 98% of customers satisfied 75% of micro-businesses and SME amongst

the nominees at the Open Innovation Factory Challenges

€1.5 M of purchases from the supported employment sector

VALUE CREATED (2020)

Regulated activity,

long-term mature assets

Major operators

of industrial assets

Market organiser

Sponsor of collective sector

interests

Trusted third party

Gas transmission operator trendsDecrease in consumption, net zero carbon and renewable gases, regional focus, diversification of energy mixes and digital transition

Our corporate purpose: enable a secure, affordable energy future that is climate-neutral

An operator firmly committed to the energy transition

Adaptation of networks and structures to enable the use of renewable gases

Power-to-GasSupport to the electric system and emergence of hydrogen

Development of gas mobility with NGV, bioNGV, gas fuelling points

R&D&I

Amelior’ Asset Management

Reduction in CH4 emissions

Support and development of renewable gasesAnaerobic digestion, pyrogasification, hydrothermal gasification

Corporate project

• An operator firmly committed to the energy transition

• Leader in European gas infrastructuresSupported by ATRR7 tariff

20205 transformative values:innovation, openness, responsibility, excellence, trust

GRTgaz, connecting the energies of tomorrow

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21202020

3. GRTgaz and Corporate Social Responsibility

GRTgaz conducted a materiality and non-financial risk analysis in 2017, working alongside its internal and external stakeholders, including its Executive committee and Stakeholder council, to identify issues relating to social, societal and environmental risks.

Opportunities Risk issues

3.1. Our non-financial risks and opportunities

3.2. Our non-financial performance 2017-2020

11 2 3 4 5

3

4

5

Impo

rtan

ce fo

r ext

erna

l sta

keho

lder

s

Impact on the global performance of GRTgaz

Circular economy and waste management

Employee involvement in civic activities

Economic and industrial development of regions

IT system security

Open Innovation

Network safety

Integration and acceptability of infrastructures

Customer satisfaction and consultation

Dialogue with stakeholders

Sponsorship

Responsible purchasing

Labour relations

Reputation and communication

Public service mission

Regulatory compliance

Business ethics

Promotion of responsible conduct

Diversity and equal opportunities

Attractiveness and recruitment Economic efficiency

of the service delivered

Customer energy performance

Digital transition in activities

Development of digital customer services

New gas uses

Health and safety at work

Responsible and collaborative management

Skills development

Industrial performance

Protection of biodiversity Energy consumption

and efficiency

Smart Grid and data

Carbon footprint and GHG emissions

Energy transition and renewable energies

2

GRTgaz materiality / non-financial risk matrix

This combined assessment enabled us to build the materiality / non-financial risk matrix and to identify 16 risk issues.

The stakeholder council identified five CSR issues but which did not entail a risk: responsible conduct, the circular economy and waste management, GRTgaz consumption and energy efficiency, protection of biodiversity and Open Innovation. Consequently, GRTgaz considers these issues to be opportunities for the company and publishes the related information in this document. Diversity and equal opportunities, and more widely the GRTgaz labour policy are also included in this document. The issues of public service mission and responsible conduct are cross-business issues and are therefore addressed through all the risk issues addressed in this Statement.

In total, 14 risk issues and 4 opportunities are addressed in the 2020 Statement of Non-Financial Performance. The new materiality matrix built in 2020 will replace the latter in next year’s Statement.

Assessment of issues in terms of four risks:

Image and reputation risk

Financial risk

Business continuity risk

Regulatory risk

Governance

Environment

Societal

Labour

Innovation

Diversity and equal opportunities

1

1

Protection of biodiversity

2

2020 marks the end of a 4-year cycle related to the 2017-2020 CSR action plan, supplemented by an initial materiality assessment and the preparation of a new cycle, with the formal expression of the GRTgaz corporate purpose, inspiring both its new corporate project CAP24 and the overhaul of the CSR policy throughout the 2021-2024 period.

(see graph)

In a similar way to a balance sheet, the purpose of this 2020 Statement of non-financial performance is to report on the actions taken and results achieved in the course of 2020, and more generally over the last four years of the CSR action plan (2017-2020) and the GRTgaz 2020 corporate project (2017-2020).

2020 will of course remain marked by the Covid-19 health crisis. Where necessary, the impact of each CSR risk and opportunity is addressed in this Statement.

For each of the 14 risks and 4 opportunities identified by GRTgaz, the summary table below provides a description of the risk/opportunity, the policies and resources deployed to mitigate the risk, as well as the results and objectives achieved over the 4-year period. The CSR action plan for 2017-2020 and the GRTgaz 2020 corporate project (2017-2020) were initiated before the materiality and risk analysis were conducted in 2017. For this reason, certain risks and opportunities are not addressed by these two action plans, but are nonetheless handled and tracked by the company. In this case, the 2020 objectives are derived from those set by their associated department.

2

Statement of non-financial performance GRTgaz

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22 232020Statement of non-financial performance GRTgaz

14 risks and 4 opportunities Definition of risks and opportunities Policies implemented KPI Results

2017Results 2018

Results 2019

Results 2020

Objectives 2020 For more details

Network safety and regulatory compliance risk

- Industrial accident - Incidents involving third-party work near GRTgaz infrastructure - Incidents relating to a network inspection and maintenance failure - Harm caused to health and safety of stakeholders (local residents, public works contractors)

- “Our collective safety and industrial safety ambitions” policy- Prevention, maintenance and monitoring policies - 2017-2026 ten-year inspection programme for all structures - Multi-fluid Order (governing the integrity of gas transmission pipelines)

Number of incidents involving third-party attacks on pipelines 3 2 7 7 Zero accidents

Chapter 4, 4.1. Network safety, p. 26

Occupational health and safety risk Serious and fatal accident involving an employee or service provider

Policy: “Our collective safety and industrial safety ambitions for 2019-2020”

Employee accident frequency rate 1.6 0.5 0.9 1.6 ≤ 2.4 Chapter 4, 4.2. Health & safety of employees and service providers, p. 28Service provider accident frequency

rate 6.5 4.4 4.6 6 ≤ 6

Information system security risk

Risk of cyber attack: long downtime of information systems, system blockages, loss of industrial and customer data, loss of data confidentiality, non-compliance with regulations

- Security management system (ISO 2700x)- Cyber security control plan- Malfunction handling and improvement actions

Number of serious information security events 0 0 0 0 0 Chapter 4, 4.3.

IT system security, p. 30

GDPR risk: violation of personal data, financial penalties (GDPR) - GDPR register of procedures Number of events reported to CNIL 0 1 0 2

Economic efficiency of service delivered risk

- Non-optimal use of financial resources and economic costs - Non-compliance with pricing policy

- Investment and cost control - ATRT7 tariff for using the natural gas transmission network

Average cost of access to the gas transmission network (Euro cents per kWh/day/year)

48 47 45 43 NA Chapter 4, 4.4. Economic efficiency of services delivered, p. 32

Business ethics risk

- Refrain from acting independently in relation to Engie production and supply activities (compliance with Third Directive)- Non-transparency of conditions of access to the transmission network- Discriminatory application of the rules of access to the transmission network- Failure to preserve the confidential nature of commercially sensitive information

- Code of good conductNumber of cases of non-compliance with the commitments of the code of good conduct

0 0 0 0 NA Chapter 4, 4.5. Independence, p. 34

- Conflicts of interest - Corruption - All forms of discrimination- All forms of harassment- Fraud- Disclosure of any confidential information

- Ethics charter Number of ethics-related incidents 9 5 9 10 NA Chapter 4, 4.6. Ethics, p. 35

Carbon footprint and GHG emissions risk - Methane emission leaks on the network and compressor stations - Energy policy: leaktight network committee (methane

emissions)Reduction in methane emissions vs. 2016 (%) -20% -45% -57% -67%

Divide our methane emissions by three (reference year 2016)

Chapter 5, 5.1.1. Reducing the GRTgaz carbon footprint, p. 36

Energy consumption and efficiency opportunity

- Reduce all energy consumption- Implement practical tools to raise the company’s energy efficiency

- Energy policy: compression committee (compression energy)

Scope 1 and 2 emissions TCO2eq/GWh transmitted 1.16 0.87 0.79 0.69

Chapter 5, 5.1.1. Reducing the GRTgaz carbon footprint, p. 36

Circular economy and waste management risk

- Failure to apply the regulations concerning waste sorting by type - Insufficient production of new renewable gases to recover the waste and contribute to the circular economy

- Construction site and job site waste management procedures - Renewable Gases programme: Our ambition to “Become the reference operator on multi-gas networks required for net zero carbon in 2050”

Waste recovery rate 74% 89% 94% 98% > 70% Chapter 5, 5.1.2. Waste recovery, p. 40

GRTgaz non-financial performance and commitments 2017-2020

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24 252020Statement of non-financial performance GRTgaz

14 risks and 4 opportunities Definition of risks and opportunities Policies implemented KPI Results

2017Results 2018

Results 2019

Results 2020

Objectives 2020 For more details

Biodiversity opportunity- Pressure on biodiversity resulting from our activities - Lack of consistency with our commitments to combating climate change

- Business committed to nature Act4nature France - Partnerships with Regional Natural Parks - Experimental conversion of delivery or isolation stations to zero pesticides - Experimental maintenance of easements to respect the green and blue grids

Number of stations converted to zero pesticide 180 298 439 985

450 stations converted to zero pesticides

Chapter 5, 5.1.3. Protection of biodiversity, p. 41

Number of sites where differentiated easement management experiments are conducted

3 6 7 8 10 sites Chapter 5, 5.1.3. Protection of biodiversity, p. 41

Energy transition and renewable energies risk

- Failure to compensate for the forecast drop in consumption habits by opportunities created by the energy transition- Insufficient development of renewable gas activities (biomethane, hydrogen, syngas / low-carbon gas, NGV) to cope with demand and expectations- New law / regulation unfavourable to natural gas or renewable gases (including syngas / low-carbon gas) - Insufficient financial support to develop new activities- Lack of competitiveness of new gases

- Renewable Gases programme (biomethane, hydrogen, pyrogasification, hydrothermal gasification, etc.)- Forward-looking projects in regions via the Regional Offices

Biomethane production capacities connected to the network in GWh/year

128 250 434 698 650 GWh/year

Chapter 5, 5.2.2. GRTgaz, a committed player in the development of renewable gases, p. 43

Number of biomethane sites connected 3 7 12 21 16 connections

Chapter 5, 5.2.2. GRTgaz, a committed player in the development of renewable gases, p. 46

Number of backhauls installed 0 0 2 2 5 backhauls

Chapter 5, 5.2.2. GRTgaz, a committed player in the development of renewable gases, p. 46

Number of forward-looking regional projects initiated 8 18 28 32 30 forward-looking

projects

Chapter 5, 5.2.2. GRTgaz, a committed player in the development of renewable gases, p. 46

New gas uses risk

- Failure to recognise CO2 gains made by renewable gases in current policies- Poor image of gas in mobility sector - Development focused exclusively on electric vehicles

- Support of project sponsors - Promotion of NGV and bioNGV- Connection of gas fuelling points

Number of public NGV fuelling points in service 85 120 151 173 250 Chapter 5, 5.2.1.

Development of gas mobility, p. 43

Smart Grid and Data risk - Failure to adapt the network for renewable energies- Data publication as Open Data contrary to stakeholder requirements - Smart Grid and Data programme % data availability on the energy

networks open data platform (ODRE) 99.9% 99.9% 99.9% 99.9% 99.9% Chapter 5, 5.2.3. Smart Grids and Open data, p. 53

Open Innovation opportunity

Encourage the business to open up to new business players bringing innovative solutions geared to the new technologies

- Innovation roadmap - Open Innovation Factory

% of micro-businesses and SME amongst the nominees at the Open Innovation Factory Challenges

87% 82% 83% 75% 80% Chapter 5, 5.2.4. Open Innovation p. 54

Customer satisfaction and consultation risk

- Insufficient quality of service - Non-transparency of conditions of access to the transmission network- Discriminatory application of the rules of access to the transmission network- Failure to preserve the confidential nature of commercially sensitive information

- Consultation initiative with all market players: “Concertation Gaz”- Quality of service, a GRTgaz commitment in its public service contract- Business policy

Number of "Concertation Gaz" meetings 22 15 17 17 NA

Chapter 6, 6.3. A gas transmission network serving consultation and customer satisfaction, p. 62

% of overall customer satisfaction 99% 96% 98% 98% NA

Chapter 6, 6.3. A gas transmission network serving consultation and customer satisfaction, p. 62

Digital customer service development risk

Failure to meet the requirement for IS portal availability for customer activities

Business policy concerning IS portal availability for customer activities

Average annual availability rate of user portals and public data platforms

Portal rate T@ = 99.96% Smart rate = 99.93%

Portal rate T@ = 99.93% Smart rate = 99.96%

Portal rate T@ = 99.75% Smart rate = 99.89%

Portal rate T@ = 99.92% Smart rate = 99.82%

Chapter 6, 6.3. A gas transmission network serving consultation and customer satisfaction, p. 62

Integration and acceptability of infrastructures risk

- Legal opposition to projects caused by the poor image of natural gas - Impacts of works and facilities on agriculture, the environment, urban development, etc.

- Structured process to manage impacts and stakeholder relationships implemented for each construction project - Implementation of compensatory measures

Number of active projects affected by legal action 2 2 1 0

Chapter 6, 6.1. Integration and acceptability of infrastructures, p. 56

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26 272020Statement of non-financial performance GRTgaz

14 risks and 4 opportunities Definition of risks and opportunities Policies implemented KPI Results

2017Results 2018

Results 2019

Results 2020

Objectives 2020 For more details

Dialogue with stakeholders risk

- Inadequate labour relations- Poor employee perception of the company, its strategy and its management

- Labour policy

% of respondents to employee opinion survey recommending GRTgaz as a good place to work (survey conducted every two years)

ND 85% 85% 89% NAChapter 6, 6.2.3 Labour relations and representative bodies, p. 60

- Insufficient dialogue and relations with suppliers - Non-compliance with payment due dates - Supplier dependency situation - Supplier practices in contravention of GRTgaz ethics charter - Irresponsible purchasing practices

- Purchasing policy (supplier relations, commitment to supported employment sector, observance of payment due dates)- Ethics charter for suppliers and due diligence procedure applicable to suppliers with highest risks in terms of human rights, health and safety, protection of the environment.

% of supplier satisfaction (survey conducted every 2 years) 76% 76% 77% 77% NA

Chapter 6, 6.4. A responsible relationship with suppliers, p. 64

Purchasing from the supported employment sector, in € million 1.39 1.49 1.55 1.56 €1.5 million

Chapter 6, 6.4. A responsible relationship with suppliers, p. 64

Insufficient knowledge and relations with stakeholders to help develop a sustainable energy system

- Roadmap of Partnerships, sponsorships or memberships - Stakeholder council

Spending in € million on sponsorship, partnerships 2.7 2.8 2.7 2.7 Chapter 6, 6.6.

Dialogue with stakeholders, p. 68

Reputation and Communication risk

- Poor image of natural gas which seems incompatible with the energy transition and is a threat to its sustainability in its renewable form- Inappropriate communication on the assets and externalities of renewable gases for institutional decision-makers

- Roadmap for communication on renewable gases

% of regional decision-makers seeing a role for renewable gas in the energy transition

ND ND 80% 80% NA Chapter 6, 6.5. Promoting the image of gas to stakeholders, p. 66

% of regional decision-makers considering that GRTgaz is useful for the energy transition

ND ND 74% 74% NAChapter 6, 6.5. Promoting the image of gas to stakeholders, p. 66

Diversity and equal opportunities - opportunity

- Promote equality between genders and generations, local recruitment and disability rights & policies- Implement non-discriminatory policies enabling equal opportunities for all

- New agreement on disabilities 2019-2021 Employment rate (employees listed as having a disability) 5.6% 6% 6.2% 6.2% 6% Chapter 6, 6.2.

A responsible labour policy, p. 58

- Transitional agreement on professional equality signed in June 2019

Percentage of women in workforce (permanent contract) 24.42% 25.38% 25.6% 24.7% 24% Chapter 6, 6.2.

A responsible labour policy, p. 58

Percentage of women in the Management Committee 37% 34.8% 35% 35.6% 35% Chapter 6, 6.2.

A responsible labour policy, p. 58

- Policy on career development and promoting work/study programmes

Work/study programme rate 6% 7% 7% 9% 8% Chapter 6, 6.2. A responsible labour policy, p. 58

Percentage of women in work/study programmes 41.3% 46.4% 37.3% 37.8% 40% Chapter 6, 6.2.

A responsible labour policy, p. 58

Trained employee rate 81.4% 80% 83.6% 60.6% NA Chapter 6, 6.2. A responsible labour policy, p. 58

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292020Statement of non-financial performance GRTgaz28

4. Safety, efficiency and ethics - core concerns for GRTgaz transmission operator activity

4.1. Network safety

Description of risk: GRTgaz considers network safety its top priority. There is a risk of industrial accidents occurring during third-party work near the network or following defective pipeline inspection and maintenance.

Policy and resources implemented to reduce the risk: In accordance with the Multi-fluid Order2, GRTgaz implements prevention, maintenance and monitoring policies that are regularly updated over the 32,519 km of its high pressure network to control the risk of industrial accidents caused by the gas transmitted. A 2017-2026 ten-year inspection programme for all structures is implemented to maintain the network at a high safety level. In terms of R&D, GRTgaz commissions research on techniques enabling the optimisation of its maintenance activities (detection, analysis and repair of defects detected on pipelines), in particular in cluttered subsoils.

For GRTgaz, third party safety involves above all preventing accidents on its network and in particular, monitoring works to ensure that all earthworks near its network are duly notified. To prevent accidents on buried structures, a single online portal containing TSO data is provided to collect work requests from all those planning such work. This enables project managers, owners and prime contractors to notify their intention to conduct works. In response, the single online portal automatically displays the contact details of the TSOs for the sections in question. Once informed of the works, GRTgaz systematically meets with contractors to precisely set the boundaries of its pipelines and provide applicable safety instructions.

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Number of incidents involving third-party attacks on pipelines Zero accidents 3 2 7 7

Indicator 2020 objective 2017 result 2018 result 2019 result 2020 result

Number of Declarations of Intent to Start Work NA 50,100 52,200 55,400 54,100

Km of pipelines inspected 2,910 (±10%) 2,936 2,644 2,581 3,208

Km of pipelines treated3 2,740 (±10%) 4,715 2,659 3,025 2,998

2020 results and 4-year overview (2017-2020):

HIGHLIGHTS FOR 2017-2020:

Reinforcement of mapping accuracy in urban areas: This project has been active since 2016. It aims to provide precise mapping of GRTgaz pipeline routes between 40 cm and 1.50 m in urban areas. It offers two benefits. The first is to enable GRTgaz teams to check detections made on the works zone against a precise map of pipelines, during jobsite visits. The second enables works contractors to use soft techniques, targeted in the right zone, in the vicinity of the GRTgaz network. 320,000 hours of work and over €18 million have provided a 69% improvement in accuracy for the network. This project will continue in 2021 and a similar project based on the same model will be initiated in rural areas the same year.

New Geographic Information System (GIS) tool enabling the overlay of DICT declaration areas and the route of the GRTgaz infrastructures.When contractors submit their DICT on the portal and set the boundaries of the geographical area of their work, this tool overlays the DICT declaration areas on the route of the GRTgaz infrastructures, providing a better view of the impacts of the works on our pipelines during site visits.

In terms of pipeline inspections and works, GRTgaz successfully reached its objective in 2020 despite disruptions caused by Covid-19, which led to extensive rescheduling. In 2020, 3,208 km of pipelines were inspected, of which 2,998 were worked on.

In terms of third-party work, the number of interferences recorded has fallen consistently over two decades. Seven incidents caused by third-party attacks,

including 2 resulting in leaks, were recorded in 2020, compared to 35 incidents in 2000. 2019 and 2020 were nonetheless marked by a surge of such incidents in relation to the three previous years. This is related to a general rise in works in 2019 (+7% compared to 2018, over 20% of it in Ile-de-France) and to disruptions relating to Covid-19 in 2020. An external communication campaign (email, video, newsletter via

trade associations, etc.) was implemented by GRTgaz to draw attention to the need to make declarations of work and maintain jobsite visits, even in a time of lockdown. Over 54,000 declarations to start work (DICT) were processed in 2020, a fall of less than 5% compared to 2019 despite the health crisis. The number of DICT declarations reflects the growing pressure of industrial risk caused by third-party works near

GRTgaz network infrastructures.

While pursuing external communication campaigns, in 2021 GRTgaz intends to emphasise the matter of third party works with managers, diversify the tools and methods of disseminating experience feedback internally and improve the efficiency of internal checks and technical supervisions.

Réseau classifié

Réseau détecté non classifié

Réseau en service

Sources : Données Acapulco en date du 08/01/2021 et Patrimoine Réalisaition : Division technique Date : 22/01/2021

(2) Order governing the safety of gas transmission pipelines(3) Once the photographs are taken during the pipeline inspection, investigations are undertaken to identify defects and repair the pipeline if necessary

AcAPulCO project(programme to improve mapping accuracy of the GRTgaz network in Urban Units

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30 312020Statement of non-financial performance GRTgaz

4.2. Health & safety of employees and service providers

Description of employee health and safety risk: Due to its range of activities, the health & safety of employees and service providers working on its behalf is a major concern for GRTgaz. Health and safety represents a key factor in performance and risk prevention and control within the company.

Policy and resources implemented to reduce the risk: GRTgaz commitments to health and safety at work are formally set out in a corporate policy document. This policy has been signed by all GRTgaz directors, distributed to all teams and displayed on all sites. It is periodically reviewed in light of the developments likely to impact the company.

To roll out this policy, an action plan for the 2019-2020 period was set up. The policy features three focus areas: reinforce the safety culture and draw lessons from our accidents; maintain and reinforce professional conduct; communicate internally and monitor the implementation of the action plan. A management and governance system is set up at all company levels to manage the health and safety at work risk (from senior management down to the individual activities). A key initiative serving the prevention of health and safety risks is being deployed within GRTgaz: safety walkarounds. With a view to developing the safety culture, these individual walkarounds underline the good practices and difficulties encountered, while pointing out areas for improvement during day-to-day activities, from a behavioural and organisational standpoint. They reinforce dialogue between line managers and employees on the perception of risk control in these activities. For the health and safety policy to succeed, the results must also be used and the full involvement of teams must be ensured. The shared Safety Challenge aims to reward departments that are involved in risk prevention and control throughout the year. GRTgaz places the same importance on the safety of the external contractors working on its behalf as it does on its employees. The accident frequency rate for service providers is monitored monthly in the same way as the employee frequency rate. Each time an accident or incident occurs, the service provider company is involved in the assessment of the event and its conclusions. An awards ceremony organised jointly by GRTgaz and OPPBTP, the French agency for risk prevention in the construction industry, is held periodically to reward GRTgaz external contractors whose results in terms of safety on GRTgaz work sites have been remarkable.

2020 results and 4-year overview (2017-2020)

KPI 2020 objective CSR action plan 2017-2020 2017 result 2018 result 2019 result 2020 result

Employee frequency rate ≤ 2.4 1.6 0.5 0.9 1.6

Service provider frequency rate ≤ 6 6.5 4.4 4.6 6

Indicators 2020 objectiveHealth and safety action plan 2017 result 2018 result 2019 result 2020 result

Number of safety walkarounds conducted 2,750 4,525 4,292 4,193 3,323

HIGHLIGHTS FOR 2017-2020:

Shared Safety DiagnosticThe Institute for an Industrial Safety Culture (ICSI) conducted a further survey of GRTgaz employees and service providers in 2017, four years after the first. A more intensive involvement of employees and managers, alongside deeper recognition of safety as an issue for GRTgaz, were remarked on. This survey was followed by an action plan to pursue the shared safety culture initiative throughout the company.

CPP (Requirements for risk prevention personnel) on the risks of gas and electricity The Gas CPP requirements, produced in 2015, are one of the pillars of GRTgaz business know-how. In 2016, GRTgaz started to write a CPP on the electrical risk. The aim is dual: simplify understanding of the electrical safety standard NF C 18-150, retaining only operations applicable to GRTgaz activities, and harmonise practices when conducting electrical work. The deployment of the electrical CPP will raise awareness for a wide range of GRTgaz actors involved in controlling electrical risks during commissioning and maintenance work. The introduction of the electrical CPP is a clear example of the perpetual need to sustain and develop technical skills in the company, in order to control employee health and safety risks.

Work on electrical box

1

1

The health and safety results for the past four years are positive. The shared safety culture has made strong progress in the company. In the medium term, the overall trend in results was reflected in the lower number of workplace lost time accidents, dropping from 24 in 2013 to 9 in 2017. Multiple actions have enabled the health and safety culture to progress. The 12 golden rules for safety, developed on a teamwork basis within the company, have helped in the dissemination of the best practices and

behaviours needed to reinforce safety. Training has also been a key factor in the prevention of accident risks. The safety walkarounds have reinforced managerial involvement and contributed to the escalation of adverse trends. In 2020, GRTgaz made 3,323 safety walkarounds. 2020 was a special year, with a higher frequency rate due to the health crisis, both for employees and service providers. The frequency rate was observed to deteriorate in the early part of the year, due to adaptations to the new

Covid-19 risk and a reduced managerial presence in the field imposed by the first lockdown. However, the involvement of Senior Management and the many risk prevention messages cascaded to employees enabled a very clear improvement starting in autumn, enabling us to maintain 2020 results at the 2017 level. The seminar, aiming to strengthen bonds and share best practices in terms of health and safety with the principal GRTgaz service providers, was re-scheduled to March 2021 due to Covid-19.

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32 332020Statement of non-financial performance GRTgaz

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Number of serious information security events 0 0 0 0 0

Number of reports to the French data protection authority CNIL NA 0 1 0 2

Indicators 2020 objective 2017 result 2018 result 2019 result 2020 result

% of employees trained in cyber security - “Fundamentals” e-learning 80% - - - 84%6

% of employees trained in cyber security - “Industrial” e-learning 70% - - - 80%7

% of employees trained in cyber security - “IS Priority Accounts” e-learning - - - - 70%8

% of employees trained in departments exposed to the GDPR (IT, DPMR (risk control & prevention), Legal, HR)

80% 80% 80% 80% 81%

4.3. IT system security

Description of risk: GRTgaz faces two major risks in terms of information system security across all its sites4: cyber security and employee data protection (General data protection regulation).

Policy and resources implemented to reduce the risk: The cyber security risk is managed right at the top of the company. A security management system based on ISO 2700x5 was deployed in 2020. The topic is regularly discussed at the GRTgaz Executive committee meetings. The Information System Security policy was revised in June 2020 and is built around 5 focus areas: governance, securing of IS assets, control of IS assets, awareness training of individuals and preparation for an attack.

Each year, Information Systems management develops an annual cyber security check plan based on sample testing of information system activities to ensure their compliance. These check plans take into account previous experience feedback. The types of checks are changing; they aim to make frontline actors accountable and test the resistance of information systems and assets to cyber attacks.

Asset securing is based on a compliance and risk reduction programme for infrastructures and new cyber security products and services.

Control of Information System assets aims to ensure they are maintained in secure conditions at all times with the appropriate responsiveness. Multiple activities contribute to this objective: contractual securing of sensitive IT services through the Security Assurance Plan (PAS), maintaining asset maps, detection and control of cyber vulnerabilities, incidents and crises, management of accounts, access and accreditations, and updating of assets in order to control their security level and obsolescence.

Employee awareness training is an essential factor in cyber security, so that everyone is accountable and actively involved in Information system security, as they are in the Health and Safety at Work objectives. This is the aim of the Cyber Adoption Plan devised in 2020. New employees and service providers complete a series of e-learning courses to help raise their awareness. Subsequently, events are held for employees and service providers, such as webinars, regular cyber news flashes, etc. Lastly, to prepare and improve our cyber resilience, crisis exercises dedicated to cyber security enable decision-makers to strengthen their responses as soon as the first signs of an attack are detected.

To respect the General data protection regulation (GDPR), in late 2018 GRTgaz appointed a Data Privacy Manager (DPM) within the legal department. A personal data protection policy was introduced in 2018. For each new application, GRTgaz analyses the degree of sensitivity to reduce the risk and implement suitable security measures (Privacy by design). During the supplier selection process, GRTgaz sends a questionnaire to the supplier to ensure the GDPR is applied. The selected supplier agrees to sign a quality assurance plan. GRTgaz reserves the right to conduct a GDPR audit if it feels a subcontractor raises a specific risk.

(4) Including industrial control systems and safety information systems, etc.(5) ISO standard concerning information security management

(6) Cumulative total since 2017(7) Cumulative total since 2018 (8) Cumulative total since 2019

The safety assessment of GRTgaz Information systems for 2020 and the previous four years is positive. 2020 was marked by ever more complex and numerous cyber threats. The national agency for information system security continuously underlined the very high surge of cyber attacks in 2020, notably involving ransomware. Despite a growing number of threats and attacks, no serious incident (major loss of IS) in terms of data security has occurred since 2017.

2020 actions concerned support for users during the Covid-19 lockdowns, the cyber security week and awareness raising for the most exposed employees. A cyber crisis exercise was

carried out in 2019 to train the Executive committee on initial responses during a cyber attack. GRTgaz has developed specific e-learning courses tailored to the risk exposure of the employee cohorts. A cyber security “fundamentals” e-learning course was rolled-out to all GRTgaz employees. Since 2017, 84% of GRTgaz employees have completed this course. An “Industrial” cyber security course was rolled out to employees actively involved with industrial infrastructures. 80% of such employees have completed the course since 2018. Lastly, the “Priority Accounts” e-learning course was introduced in 2020 for employees and external stakeholders with priority

accounts within the Information Systems department. This action was taken in response to internal feedback and increasing malicious actions in the current health crisis, which are specifically targeting priority accounts. Other awareness training campaigns are planned for this specific cohort: communication following internal feedback and external events, themed workshops, test campaigns to check responses, etc.

GRTgaz is also involved in work groups and think tanks on cyber security in its ecosystem (cyber work group on sector-specific strategic agreement), cyber security work group at the Energy Regulatory Commission CRE).

In terms of GDPR, two reports were made to French data authority CNIL in 2020. Several GRTgaz subcontractors were victims of cyber attacks. The departments most exposed to the GDPR risk (IT, Legal, HR, Purchasing, Risk Prevention and Control) regularly receive awareness training. In 2020, 81% of employees in these departments received awareness training. An update of the procedure register was initiated in 2019 to develop structured monitoring of procedures. A new e-learning course is being selected and should enable full training for all teams.

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Over the past three years, and in a context exhibiting a trend towards lower consumption, GRTgaz was able to maintain the economic efficiency of its activity. The change of tariff period (ATRT7) on April 1st 2020 marked the continuity of GRTgaz efforts regarding its operating costs (net operating expenses) against a backdrop of decreasing asset financing costs (standard capital charges), reflecting the

long-term decline in “zero-risk” interest rates and asset management driven by the issues of the energy transition.

2017 was marked by the delivery of the capacities developed through the investments of the previous years for the connection of the Dunkirk terminal (+ 790 GWh/day at the interface between the Dunkirk LNG terminal and the transmission system).

In 2019, a further 100 GWh/day capacity from Switzerland to France in Oltingue, and of 37 GWh/day from France to Switzerland was delivered by optimising the use of the network with adjacent operators (and without significant further investment). The connection of biomethane facilities in 2020 remained moderate in scale but exhibited a strong growth dynamic.

4.4. Economic efficiency of the service delivered

Description of risk: The economic efficiency of the service delivered by GRTgaz is a core topic of dialogue with the French Energy Regulatory Commission (CRE) which recognises in the authorised revenue for GRTgaz the costs of an efficient operator9, and by actions taken by the company to meet the tariff objectives.

Policy and resources implemented to reduce the risk: The approval by the CRE of costs eligible for collection from GRT authorised revenue and the incentives to generate greater efficiency are negotiated on a multi-year basis (definition of tariff of third party access to the transmission network - ATRT in French). This negotiation is based on a third-party audit of GRTgaz costs, several public consultations and hearings.

Public consultations and CRE hearings ensure extensive participation by stakeholders in the process. They enable a trade-off between the level of service delivered by GRTgaz, respect for its public service contract commitments, and an analysis comparing the costs to be recovered and the expected benefits for stakeholders of the gas market as a whole (competition, security of supply, etc.).

HIGHLIGHTS FOR 2017-2020: On 23 January 2020 the CRE published a decision on the tariff charged to use the natural gas transmission network for GRTgaz and Teréga, referred to as the ATRT7 tariff, applicable as from April 1st 2020 for a 4-year period with annual revisions. The main objectives of the ATRT7 tariff are:

The smooth operation of the gas market with simple, foreseeable rules and consistent with previous tariffs;

Control over tariff changes: after the end of a major investment cycle and in the context of falling subscriptions for transmission network capacities and changes in gas consumption by 2030;

Support for the energy transition: tariffs enable operators to accept biomethane in their networks and for R&D;

Sustained high security level in gas infrastructures.

Overall, the operating costs authorised by the CRE for the 2020-2023 period are equivalent to those of 2018 adjusted annually for inflation. The response to the company’s new issues (such as intensified network adaptations for biomethane injection), will therefore require the company to ensure a consistently high performance standard.

The Bassée Biogaz anaerobic digestion unit in Noyen-sur-Seine

1Finally, this ATRT tariff is submitted for approval by the French energy council10 of energy stakeholders (Parliament, regional authorities, consumer associations, etc.) before being approved by the CRE.

2020 results and 4-year overview (2017-2020):

KPI 2017 result 2018 result 2019 result 2020 result

Average cost of access to the gas transmission network (Euro cents per kWh/day/year)11 48 47 45 43

(9) Article L.452-1 stipulates that the French Energy Regulatory Commission (CRE) determines the tariffs for use of the natural gas transmission networks in compliance with the transparency and non-discrimination requirements, in order to cover all the costs borne by TSOs and insofar as these costs correspond to those of an efficient TSO.(10) Decree no. 2006-366 of 27 March 2006

(11) This indicator is used to measure the time-dependent transmission capacity costs of accessing the gas market (Euro/kWh/day/year: to have 1 kWh per day every day for one year) and manage the trend in the efficiency of the service delivered by GRTgaz to the market.

1

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In 2020 GRTgaz completed its 3-year programme (Our collective ambition for ethics 2018-2020) of prevention actions and efforts to ensure compliance with the obligations of the Sapin II Act. This programme enabled all employees of all levels of the company to become more familiar with ethics risks, with more feedback, reports and questions.

In 2020, 10 ethics-related incidents were reported. For the first year, and especially during the second half of 2020, most incidents involved issues with interpersonal relationships. The Covid-19 situation has

caused a large amount of meetings to be held remotely, with a significant reduction in personal interaction over time and is likely to have contributed to this unprecedented growth in personal ethics incidents.

Throughout 2020, each department received awareness training on the principal ethics-related risks from the compliance officer and members of the ethics committee. Several departments ramped up this internal awareness training for employees. The due diligence mechanism for suppliers has also been reinforced. The number of

suppliers subjected to an ethics audit by an external provider appointed by GRTgaz has more than doubled each year, rising from 8 suppliers audited in 2018, to 17 in 2019 and 35 in 2020.

The “Our collective ambition for ethics 2021-2024” action plan will mainly focus on prevention and aim to raise employee awareness through fun, innovative methods to encourage dialogue based on real-life cases. The aim is to continue to encourage free speech and increase the awareness of all.

4.5. Independence 4.6. Ethics

Description of risk: As an independent transmission system operator (ITO) certified by the French Energy Regulation Commission (CRE), GRTgaz must meet the obligations of independence and autonomy applicable to network operators controlled by a vertically integrated company. GRTgaz must act fully independently of Engie’s production and supply activities and ensure non-discriminatory, transparent conditions of access to the network, and preserve the confidentiality of commercially sensitive information. Any failure to observe the rules and related commitments exposes GRTgaz to sanctions.

Description of risk: Risks identified for GRTgaz concerning ethics are as follows: all forms of discrimination, all forms of harassment, fraud, corruption, conflicts of interest, and the disclosure of any confidential information. The primary objective of GRTgaz is to protect its employees and the company against ethics risks. In this respect, the GRTgaz approach to ethics is above all based on prevention.

Policy and resources implemented to reduce the risk: The code of good conduct approved by the French Energy Regulatory Commission (CRE) is the cornerstone of the GRTgaz certification package as an independent transmission system operator. This certification requires GRTgaz to extend full equality of treatment to all shipper customers, biomethane producers or consumers connected to the transmission network, to avoid unfair competition between gas suppliers. A compliance manager, whose independence is assured by the Energy Code, ensures compliance with these requirements. They report regularly to the CRE and produce an annual report12 on GRTgaz’ implementation of its code of good conduct, on the observance of independence obligations and correct execution of the ten-year development plan.

Each GRTgaz department has a code of conduct correspondent, whose mission is to be the bearer of the code of good conduct in their department, manage the annual action plan and report on results. Observance of the code of good conduct is assessed in the course of an annual opinion survey of shippers and industrial customers.

Policy and resources implemented to reduce the risk: The ethics charter was updated in 2020 in accordance with the Sapin II14 legislation. It defines the four fundamental principles that guide the conduct of the company and its employees: compliance with laws and regulations, culture of ethics, goodwill, integrity and honesty, and respect for others. The primary objective of this charter is to anchor ethics in the company’s strategy, in its managerial and professional practices, and to regularly measure compliance. The organisation of ethics management at GRTgaz also includes the “Our collective ambition for ethics 2018-2020” plan of action, an ethics committee with representatives from all departments, an internal

2020 results and 4-year overview (2017-2020):

alert system (comprising an email account, ethics correspondents and a compliance officer), as well as training for the managers and employees most exposed to the risk of corruption.

To reinforce the prevention of ethics risks with suppliers and partners, GRTgaz has introduced a dedicated ethics charter and a due diligence procedure for the suppliers and stakeholders most at risk in terms of human rights, health and safety and environmental protection.

KPI 2017 result 2018 result 2019 result 2020 result

Number of cases of non-compliance with code of good conduct 0 0 0 0

Indicator 2017 result 2018 result 2019 result 2020 result

% of employees receiving training on code of good conduct ND 97.5 98% 98.8%

Results and 4-year overview (2017-2020):

KPI 2017 result 2018 result 2019 result 2020 result

Number of ethics-related incidents 9 5 9 10

Indicator 2017 result 2018 result 2019 result 2020 result

Number of employees receiving ethics training 400 400 900 500

% of employees trained in ethics 13% 13% 32% 17%

Number of suppliers assessed by an external service provider 0 8 17% 35

In 2020, the compliance manager reported no significant13 non-compliance with the code of good conduct. From 2017 to 2020, GRTgaz reinforced its control over commitments to the regulator and its compliance with the Third directive. Independence is now firmly a part of our business culture. Employee training on the code of good conduct via wider e-learning programmes

and presentation meetings to departments have enabled employees to receive training on the regulatory framework and related rules. At the end of December 2020, 98.8% of GRTgaz employees had completed this training. The independence of GRTgaz is also acknowledged by its customers. In 2020, the results of the annual customer opinion survey show that:

100% of shippers and 97% of industrial customers think that GRTgaz is an independent operator (vs. 97% and 90% respectively in 2019). The results performance of this survey and full application of the code of good conduct by each department are integral to the incentive agreement.

(12) A summary of this report is available on the GRTgaz website www.grtgaz.com.(13) The compliance manager observes a situation which could weaken the ITO model or affect fair competition between customers. Their report will result in fundamental corrective actions. The situation in question is terminated immediately. The CEO and relevant CRE departments are informed.

(14) Law no. 2016-1691 of 9 December 2016 on transparency, the fight against corruption and the modernisation of economic activity

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5. GRTgaz, a committed player in the energy transition

5.1. Limiting the environmental impacts of GRTgaz

5.1.1. Reducing the GRTgaz carbon footprint

Description of risk: Methane emissions and compression energy consumption are the biggest sources of greenhouse gas emissions by GRTgaz. GRTgaz also addresses scope 3 emissions through actions to reduce the carbon footprint of its work methods (commercial building power, IT, travel, etc.) and progressively extended to the indirect emissions caused by its purchases. To combat climate change, GRTgaz has made the reduction of its carbon footprint one of its primary objectives for many years, to reduce the carbon footprint of energy uses (development of renewable gases, network upgrades to accept more renewable gases, development of NGV mobility and gas uses in industry to replace more carbon-rich energy sources).

Policy and resources implemented to reduce the risk: To reduce its carbon footprint, the company has developed a 3-pronged energy policy: reduce methane emissions, reduce energy consumption and reduce tertiary activity consumption. Each commitment is overseen by a dedicated committee: a leaktight network committee (methane emissions), a compression committee (energy) and a tertiary energy committee.

In 2016, GRTgaz set out an ambitious strategic objective to divide its methane emissions by three in four years. To achieve this, GRTgaz worked to identify potential areas for reduction of each emission source to adapt and prioritise its action plan. Detection and repair programmes for diffuse leaks are conducted on all network stations and compressor stations. Annual third-party audits are conducted on a representative share of the company asset fleet, in particular on a third of compressor stations and interconnections.

For the past ten years, GRTgaz has committed to prevent gas emissions to the atmosphere during its one-off maintenance operations. To reduce such emissions, GRTgaz reduces the pressure. If the volume of gas remains high, a mobile compressor (gas booster) is used to recover the gas and reinject it into the active network. Alongside, or for operations requiring that smaller pipe sections be purged, the burning technique is preferred. It reduces the greenhouse gas impact by a factor of 10. Now over 90% of the gas is recovered during works and maintenance operations. The same techniques are used on compressor stations for smaller volumes.

In terms of energy consumption, GRTgaz strives to reduce all its consumption, starting with the energy used to transmit gas to all points of the network. Each day, simulations are carried out using the Minopex software, which serves to configure our industrial capability in order to minimise our energy consumption. The aim is to manage the facilities in real time while minimising the differences from the calculated reference consumption. Whenever

possible, GRTgaz also uses its capacity for trade-offs between gas compressor stations and electrical stations to use the less carbon-rich energy.

GRTgaz is committed to fighting climate change and actively participates in numerous work groups to contribute to the future carbon neutrality of the gas sector. In 2020, GRTgaz updated its carbon balance (2019 data), published on the ADEME carbon database, and plotted its low-carbon trajectory for the coming years in line with the Paris Agreements.

Gas booster operation

1

1

Compressor station in Beynes (Yvelines)

2

2

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Evolution of emissions since 2016 in million (n)m3

10

25

35

5

20

30

0

15

2016 2017 2018 2019 2020

30.9

24.7

16.8

13.4

10.3

Evolution of emissions since 2016 in million (n)m3

Compression micro-leaks-vents

Chromatographs

Micro-leaks network

Compression other emissions

Works

Control valves, safety valves network

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Reduction in methane emissions vs. 2016 (%)Divide natural gas emissions by 3 vs.

2016-20% -45% -57% -67%

Scope 1 and 2 emissions TCO2eq/GWh transported 1.20 0.88 0.86 0.69

Indicator 2020 objective 2017 result 2018 result 2019 result 2020 result

Electrical energy (GWh of primary* energy) 1,251 1,114 1,071 867

Total Compression (GWh of primary* energy) 2,647 2,369 2,601 1,896

Total Compression GWh GCV gas eq. 2,941 2,632 2,890 2,106

Emissions tCO2eq (scope 1 and 2) 754,135 570,970 603,539 441,966

Quantities transported GWh 628,446 645,679 701,790 639,150

The ambitious objective to divide methane emissions by 3 between 2016 and 2020 was achieved by extensive mobilisation of operators in the field and

strong involvement of senior management. At 10.3 Mm3, 2020 results are within the target range with a -67% reduction in methane emissions compared

to the 2016 level. 2020 actions primarily concerned the reduction of diffuse leaks on the network.

GRTgaz is also a driving force in the gas sector to reduce methane emissions. We can highlight the following initiatives:

Drafting of recommendations and awareness-raising actions on the reduction of methane emissions with Gas Infrastructure Europe (GIE) and Marcogaz.

Adhesion to the Methane Guiding Principles15

In January 2020, GRTgaz signed the Methane Guiding Principles, by which the company commits to further reduce its methane emissions, increase the transparency and accuracy of methane emissions data. By signing these principles, GRTgaz also commits to encouraging other players in

the natural gas value chain - from production to the end consumer - to adopt these principles. GRTgaz contributed to the drafting of two best practices guides; Reducing Methane Emissions: Best Practice Guide - Identification, Detection, Measurement and Quantification Guide (methaneguidingprinciples.org) and Reducing Methane Emissions: Best Practice Guide - Transmission, Storage, LNG Terminals and Distribution (methaneguidingprinciples.org)16

Joining OGMP 2.017

(Oil & Gas methane partnership): Cross-industry initiative aiming to minimise methane emissions in the oil and gas sector. Managed by the United Nations Environment Programme, the OCMP provides a framework for international reporting to deliver transparent data on methane emissions from

different segments of the Oil & Gas chain. Since 2020, GRTgaz has actively participated in developing the reporting model for its adaptation to the gas midstream market and co-led the task force responsible for the OGMP 2.0 technical guide to reporting. GRTgaz undertakes to provide its methane emissions data for the purposes of this new international reporting framework and to define an ambitious reduction objective for 2025.

REDUCE COMBUSTION EMISSIONS DUE TO COMPRESSION The results in terms of reducing greenhouse gas emissions due to compression are positive. GRTgaz has reached a historically low level for energy consumption. In 2020, the gas inflows and outflows were especially favourable to lower energy consumption, with less transmission to

adjacent countries (-13), more withdrawals than injections, and a -7% fall in consumption due to the health crisis and historically mild climate. These particular circumstances led to a -30% reduction in compression energy.

LARGE REDUCTIONS IN SCOPES 1 AND 2 IN 2020Overall, the company’s efforts to reduce methane emissions and compression energy consumption, combined with a favourable situation for network operation, enabled it to reach a historically low level of emissions in 2020 for scopes 1 and 2, with 442,000 tonnes of CO2-equivalent, representing 0.69 t CO2 equivalent / GWh transported in 2020. Since 2016 GRTgaz has placed its own emissions on a carbon trajectory compatible with the Paris Agreements.

(15) https://methaneguidingprinciples.org(16) For more information, see https://methaneguidingprinciples.org/(17) http://ogmpartnership.com/

44% 25%

15%

6%

8%

2%

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5.1.2. Waste recovery and recycling

Description of risk: The management and recovery of waste generated by its industrial activity is a major issue for GRTgaz in terms of environmental protection and reputation.

5.1.3. Protection of biodiversity

Description of risk: 90% of the GRTgaz network in France is located in wooded or rural areas, with 5,600 km of pipelines in protected natural spaces. Right-of-way areas are a major issue for GRTgaz. The pipeline network stretches over 32,000 km and the sites, including over 5,000 industrial right-of-way areas (compressor stations, pressure reduction stations, interconnection sites, etc.) are the main features of these right-of-way areas. It is essential for GRTgaz to preserve biodiversity in these spaces, to limit the environmental footprint of its activities. Its ambition is to turn its network into a mesh of ecological continuities and to reconcile the right of way and upkeep of its network with the preservation and conservation of ecosystems. Since 2019, GRTgaz has been engaged in becoming a “Business committed to nature - Act4nature France” and renewing its commitment as part of the preparation of the rescheduled Biodiversity COP in 2021.

Policy and resources implemented to reduce the risk: GRTgaz applies the regulations concerning sorting by type of waste by maintaining waste registers and implementing three type of sorting on its sites:

Ordinary waste sorting on all business sites (paper, plastics, cans, etc.).

Industrial waste sorting on the 26 compressor stations (inert waste and hazardous waste on Environmental Protection Classified sites).

Construction site waste sorting managed with contractors (wood, scrap metal, rubble, soil, etc.).

Historically, most waste is generated by construction sites. A reduction in the number of large construction projects automatically results in a significant reduction in the volume of waste generated by GRTgaz, and leads the company to raise its efforts on “small sites” in local areas, the number of which is rising.

Policy and resources implemented to reduce the risk: GRTgaz has defined an action plan to protect and preserve biodiversity over the 2017-2020 period. The first action concerned the differentiated management of easements, in order to preserve and re-establish ecological continuities. Easements are strips of grassland above pipelines. They contain no buildings or large trees and are open and protected areas, favourable to the movement and reproduction of animal and plant species. Specific management of these easements can increase their ecological interest. No pesticides are used in maintaining easements.

The second action in the plan concerns the identification of alternative solutions to pesticides in the upkeep of GRTgaz industrial sites. Well aware of the issues associated with these uses, GRTgaz sought to adopt a strong approach to identify alternative methods to the pesticides that its current service providers might propose and identify the best available practices on the market.

HIGHLIGHTS FOR 2017-2020: Involvement of all activities in waste management for the past four years, through five flagship campaigns:

Introduction of Data Governance Project: control of all waste management data and in general all environmental data;

Waste invoicing process specific to each activity to hold activities accountable for waste management both in financial and operational terms;

Regular field briefings by the Risk Prevention and Control department;

Introduction of a GRTgaz waste management Single Market with application for all regions, reinforced data reliability and control;

Deployment of Tri gaz: a single application for all GRTgaz activities.

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

% waste recovery > 70% 74% 89% 94% 98%

Indicators 2020 objective 2017 result 2018 result 2019 result 2020 result

Total non-hazardous waste in tonnes NA 88,754 65,225 40,740 28,780

Total hazardous waste in tonnes NA 1,110 1,048 2,265 641

Recovered non-hazardous waste in tonnes NA 66,522 58,747 39,831 27,723

Recovered hazardous waste in tonnes NA 375 402 596 207

Outside of local construction sites, non-hazardous waste mainly comprises materials extracted from work site excavations (sludge, concrete blocks, unsoiled rubble). Non-hazardous waste from local construction sites mainly consists of excavated soil, rubble and concrete.

Many actions are underway to reduce and recover waste: upstream (selective) sorting, crushing rubble and stone on site, priority given to recycling streams, internal communication actions, collection of fabrics and personal electrical and electronic equipment waste (computers, landline and mobile phones, chargers, batteries, etc.).

Waste recovery over the past four years has progressed strongly, from 74% in 2017 to 98% in 2020. 99.8% of non-hazardous waste and 32% of hazardous waste were recovered in 2020.

In 2020, a new waste management tool was provided to GRTgaz entities to ensure better control of waste management operations. To support the initiative, a specific framework agreement on the management of industrial and ordinary waste was introduced in November 2020 with a clause imposing an annual inspection by the contractor of the condition of the containers and the basic provisions for good waste management.

In terms of raising employee awareness, news bulletins, conferences and information campaigns took place remotely during the European sustainable development week in 2020. Information meetings and presentations were held concerning the CSR issues facing GRTgaz, in particular the issue of waste and its treatment for GRTgaz.

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GRTgaz interacts with its ecosystem and is forging multiple partnerships in the area of biodiversity. Work is being done in partnership with the Federation of Nature Parks in France and locally with regional nature parks, to identify and test new approaches. GRTgaz also participates in the B4B+

2020 results and 4-year overview (2017-2020):

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Number of stations converted to zero pesticides 450 stations

converted to zero pesticides

180 298 439 985

Number of sites where differentiated easement management experiments are conducted 10 sites 3 6 7 8

CLOSE-UP ON GREENING

Is the solution to the pesticide issue for GRTgaz to be found in nature itself?

A short time ago, managing vegetation in an industrial environment meant zero vegetation. This vision is becoming out-of-date! GRTgaz has decided to focus on greening: a plant-covered surface, low-growth and requiring no upkeep, will enable us to prevent the growth of vegetation less compatible with our operational requirements. And nature will have bit more space! The trial has been launched on fifteen or so sites with the widespread roll-out of the solution under review. Nature-based solutions are the most sustainable, and this issue is no exception.

5.2. Supporting new gas uses and renewable gas activities

Policy and resources implemented: GRTgaz is an active player in the gas mobility sector. The company is committed to natural gas for vehicles at European, national and regional levels through partnerships with industry players. As member of the NGVA Natural & bio Gas Vehicle Association Europe) and the French NGV association (AFGNV), GRTgaz is working alongside all stakeholders on the 2020-2025 vision for the development of NGV/bioNGV and the required fuelling infrastructures.

By creating industrial partnerships and deploying in-house engineering and expert assessment skills in compression, GRTgaz is supporting project sponsors and helping to boost the sector by promoting a comprehensive network of gas fuelling points, meeting the needs of all vehicle types.

In-house, GRTgaz has also worked to develop NGV fuel across its vehicle fleet and to operate its own fuelling stations to meet its needs. A programme to deploy natural gas fuel for vehicles (NGV) is under way, overseen by an NGV project manager. The aim is to reduce the environmental footprint of the GRTgaz vehicle fleet and to participate in developing gas mobility.

5.2.1. Development of gas mobility

Description of risk: Transport is the activity generating the most greenhouse gas (GHG) emissions in France. The development of gas mobility, natural gas for vehicles (NGV)18

and bioNGV19 represents an alternative to conventional fuels in the fight against air pollution (near- elimination of fine particles) and climate change (25% less CO2 emissions compared to petrol and 10% less CO2 emissions compared to diesel oil with NGV and over 80% less CO2 emissions with bioNGV).

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Number of public NGV fuelling points in service 250 gas fuelling points 85 120 15120 173

Indicator 2020 objective 2017 result 2018 result 2019 result 2020 result

Estimated annual consumption of NGV (TWh) NA 1.3 1.7 2.2 2.9

Portion of gas-powered vehicles in GRTgaz's existing fleet 20% 11% 13% 20% 23%

(18) NGV is an umbrella term for vehicles running on CNG (compressed natural gas, i.e. natural gas in gaseous form) and LNG (liquefied natural gas). (19) Renewable gas produced by the fermentation of organic waste(20) Erratum to data published in the GRTgaz 2019 statement of non-financial performance: 11 station projects aggregated in 2019 were in fact postponed until 2020.

GRTgaz vehicle in a NGV station in Compiègne (60)

1

1The results of actions taken by GRTgaz over the past four years in terms of biodiversity are very positive. Within an experimental framework, the actions undertaken have enabled us to move from virtuous but dispersed initiatives to a structured, well-oriented approach to the pressures that GRTgaz may exert on biodiversity. This topic is now firmly anchored in the practices of our employees.

Sine 2017, GRTgaz has been making efforts to

better understand the most favourable upkeep conditions for biodiversity. In 2020, 8 trials on the differentiated easement management were initiated, the most recent being with the Regional Nature Park of Lorraine. This will be supplemented by advanced contacts with two other structures, allowing the target of 10 trials to be reached in the coming months. This means that GRTgaz will have the varied feedback needed to prepare the systematic introduction of differentiated upkeep options

(e.g. late mowing, mowing with removal) directly in the green space management framework agreements.

The objective of 450 rights of way converted to zero pesticides set for 2020 was exceeded with ease. The application of regulatory pressure (Egalim Act) and the progress achieved by the trials, alongside better monitoring, explain this performance.

In Autumn 2020, GRTgaz initiated a greening trial for 12 sites,

using vegetation whose growth and upkeep are compatible with network operational requirements. If the trials are successful, the total elimination of pesticides could be rapidly envisaged. The efforts of coming years will enable GRTgaz to move from trials to the industrial roll-out of these best practices. The conversion of all the company’s rights of way to zero pesticides is now being examined.

Club (Business for positive biodiversity) and the Club of linear infrastructures and biodiversity (CILB) and supports the ITTECOP research project on overland transport infrastructures, ecosystems and landscapes.

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In France, GRTgaz is committed alongside sector players to encouraging the development of NGV, especially on large vehicle markets (HGV, bus, coach). In regional areas, GRTgaz helped plan fuelling infrastructures consistently with European, French and regional carbon reduction objectives, and with local pollution reduction targets by creating Low-Emission Zones. GRTgaz has supported its industrial customers and mobility organising authorities to ensure better understanding of NGV / bioNGV solutions for the transport of goods and people. GRTgaz operates the Gas Mobility Open Data platform hosted on the AFGNV website, on behalf of the whole sector23. Data concerning all gas fuelling points across France and the national fleet of NGV vehicles are available on this platform. In 2020, the map of Low-Emission Zones in effect and the associated requirements in terms of traffic authorisations were made available.

For its own vehicle fleet, GRTgaz has also made intensive efforts over the past four years in gas mobility, deploying CNG in its internal vehicle fleet. As part of its CSR 2017-2020 action plan, the objective was already reached by the end of 2019. In 2020, GRTgaz operates 275 vehicles running on NGV (Mercedes Sprinter, Fiat Doblo and Ducato, VW Caddy, Fiat 500L and Seat Leon), or 23% of gas vehicles in its fleet. GRTgaz is increasing its NGV fleet as and when public refuelling stations appear across the country and private stations on its sites are installed. This deployment is proceeding with the fleet of CNG vehicles in mind, as well as maintenance and the requirements of GRTgaz activities in terms of the gas fuelling point offering. GRTgaz also operates 20 internal gas fuelling stations to meet its own needs and plans to have 30 stations in use by the end of 2021. GRTgaz continues to commit to the development of CNG for its fleet and has set itself the objective of a third of its fleet operating on NGV in 2024.

In 2020, the sector provides 173 gas fuelling points21 (up 31% vs. 2019), falling below the initial target of 250. These results can be explained by the 2020 health crisis which caused delays on work projects, and the closure during 2019 and 2020 of 25 small ageing fuelling stations built in the 2000’s. The overall dynamic remains positive and the objective of 250 gas fuelling points will likely be achieved in 2021.

The gas mobility sector has grown impressively over the past few years. In 2020, the energy consumed by the French NGV vehicle fleet increased by 30% in relation to 2019, or by 2.9 TWh. The number of vehicles also rose, with over 24,000 vehicles in

circulation, mostly heavy goods vehicles. The HGV fleet has grown by a factor of four in three years, with another 5,000 such NGV heavy goods vehicles added by the end of November 2020. This segment is seen as the best alternative to diesel by public authorities and transport providers. The Multi-year Energy Programme published in April 2020 forecasts a fleet of 54,000 heavy goods vehicles by 2028. To encourage the development of gas mobility, the Mobility Orientation Act published at the end of 2019 now facilitates connection to the transport network for economically viable stations, with lower compression costs due to higher network pressure.

On a European level, GRTgaz is committed alongside the rest of the sector to developing fuelling infrastructures and ensuring the smooth regulatory integration of bioNGV as a net zero carbon and air quality preservation solution. GRTgaz is active in the NGVA (Natural & bio Gas Vehicle Association), working on the development of a methodology which aims to promote bioNGV more effectively in legislation, based on a life cycle analysis approach to calculating vehicle CO2 emissions. Today, European regulations only apply to emissions from vehicle exhausts. They do not distinguish between CO2 from fossil fuels (petrol, diesel oil, NGV) and biogenic CO2 (liquid or gas biofuel).

Using the method developed by sector players, the whole life cycle of the vehicle is analysed (from manufacture to recycling) as is that of the fuel (production, refining, transportation, distribution, combustion). In 2019, a study by IFPEN22 using this method showed that over its whole life, a mid-range light vehicle, a small utility vehicle or a delivery truck consuming bioNGV has a lower impact on the climate than an electric vehicle consuming low-carbon electricity representative of the French energy mix.

HGV

Max

imum

veh

icle

flee

t

Date quarter

Light vehicles BusesBus/

coachUtility

vehiclesSkips Other

7.5 k

5 k

2.5 k

2014

-12

2015

-03

2015

-05

2015

-08

2015

-11

2016

-02

2016

-05

2016

-08

2016

-11

2017

-02

2017

-05

2017

-08

2017

-11

2018

-02

2018

-05

2018

-08

2018

-11

2019

-02

2019

-05

2019

-08

2019

-11

2020

-02

2020

-05

2020

-08

2020

-11

0

Development of NGV fleet since 2014 by type of vehicle

Potential impacts on climate change (LUV) Time scale 2019

Forecast CNG fleet

200

33

60137

152 229

273

100

02016 2017 2018 2019 2020

HIGHLIGHTS In 2017, GRTgaz acquired

a minority stake in the mixed economy company SIGEIF Mobilités, to install 10 public NGV fuelling stations for goods vehicles and utility vehicles in Ile-de-France: To date, three stations are in operation and three more should be opened in 2021. Of the stations in operation, that of Gennevilliers, commissioned in 2020, is the first public fuelling station connected to the GRTgaz gas transmission network. It is also the largest station in France.

Support to public transport operator RATP and Ile-de-France Mobilités, to convert bus fleets. The Ile-de-France region has initiated a large-scale programme to green its fleet of buses. For RATP, the aim is to operate 2,200 bioNGV buses by 2025 (compared to 250 at this time) and 1,500 electric buses (vs. 150), in addition to its 1,000 hybrid models. For 2030, the region’s objective is to operate 70% bioNGV buses and 30% electric buses. To this end, over 50 depots will be converted to supply the vehicles with bioNGV and electricity.

NGV station in Wissous

1

1

(21) A fuelling station is one supplying either CNG or LNG. If the station offers both, it counts as two fuelling stations (this method is taken from the European Alternative Fuels Infrastructure directive (AFI).(22) LCA of vehicles running on NGV and bioNGV - IFPEN - Sept. 2019: https://www.ifpenergiesnouvelles.fr/sites/ifpen.fr/files/inlineimages/Innovation%20et%20industrie/Analyse%20du%20cycle%20de%20vie%20(ACV)/Rapport_ACV%20GNV_version%20finale.pdf

Source: OpenData Mobility 2020 Source: IFPEN study “LCA of vehicles and bio NGV -

1000

900

800

700

600

500

400

300

200

100

02019

ICE-powered LUV

(diesel)

2019Non-recharging

hybrid(diesel)

2019ICE

(NGV)

2019LUV

electric +

2019ICE-powered

LUV(BioNGV)

2019LUV

electric, recharging,

diesel(100% electric)

NGV

BIO NVG

Life cycle of vehicle Life cycle of tyres

Life cycle of battery

“Well to wheel” (electricity, FR)

“Well to wheel” (liquid fuel)

“Tank to wheel” (NGV/bioNGV)

“Well to tank” (NGV/bioNGV)

(23) Opendata Mobilité Gaz AFGNV, operated by GRTgaz: https://gnv grtgaz.opendatasoft.com/pages/dashboard_v3/en-service#en-service

300

Gre

enho

use

gas

emis

sion

s (g

CO

2 eq.

/ to

nne

per k

m)

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48 492020

5.2.2. GRTgaz, a committed player in the development of renewable gases

Description of risk: France has committed to becoming carbon-neutral by 2050. By developing renewable gas activities (biomethane, pyrogasifi cation, hydrothermal gasifi cation, Power to Gas) GRTgaz is on course to achieve this objective. With a stated objective in the Energy code of 10% of renewable gases consumed in France in 2030, biomethane will be a key driver in helping the French economy achieve net zero carbon. The diff erent forms of renewable gas production (anaerobic digestion, pyrogasifi cation and hydrothermal gasifi cation of biogenic matter) are playing a central role in the energy transition and the circular economy approach. The commitment of GRTgaz to the energy transition, together with its presence in the regions, are enabling it to support the choices of regional authorities and European institutions.

Policy and resources implemented to reduce the risk: In 2019, GRTgaz deployed a transverse organisation with a renewable gas programme focusing on four projects, each dedicated to a renewable gas activity (anaerobic digestion, pyrogasifi cation, hydrothermal gasifi cation & micro-algae, hydrogen). This programme intends to drive the whole company behind one ambition: become the reference operator of the multi-gas24 networks required to be carbon neutral in 2050. In 2020, this organisation directly involved the equivalent of 75 full-time employees. To support the energy transition across France’s regions, GRTgaz assists regional authorities in identifying, testing and promoting innovative projects to use renewable gases (biomethane, bioCNG, pyrogasifi cation, hydrogen, hydrothermal gasifi cation, etc.) through regional GRTgaz offi ces.

In terms of anaerobic digestion, a mature activity undergoing industrial rollout, GRTgaz has developed its design and engineering capacity, fi rstly to connect biomethane production projects requesting access to its network and secondly, to create facilities enabling the backhaul of gas from distribution networks to the transmission network (backhaul stations), in order to increase the capacity of distribution networks to accommodate biomethane production.

For new activities, GRTgaz is an active leader in France (including ATEE Club Pyrogazéifi cation, ATEE Club P2G, France Hydrogène, Hydrogen Europe and hydrothermal gasifi cation activity under development) and is also a design and project partner in pyrogasifi cation, hydrothermal gasifi cation and hydrogen.

GRTgaz is preparing the conditions to integrate hydrogen into gas networks, by driving the consultative group on network access for producers of hydrogen and other hydrogen-containing gases. This work group features infrastructure operators, public bodies, community associations and trade associations. It aims to defi ne suitable procedures for the connection of producers and the injection of the syngas or hydrogen they produce, under the best possible conditions. GRTgaz also partners coating development projects to protect transmission network pipelines from the eff ects of hydrogen. Lastly, GRTgaz is committed to deploying hydrogen-only infrastructures, particularly through the conversion of existing gas infrastructures.

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Renewable gases: forward-looking

solutions for our regions

Renewable gases

A parallel can be drawn with electricity, where there are diff erent inputs (sun, wind, water fl ow, etc.) and diff erent transformation processes (photovoltaic, wind turbine, water turbine, etc.)

Target fermented organic waste

Fermentation

Solid biomass (under waste status) Waste (thermal decomposition of solid fuel etc.)

High temperature (850 to 1500 °C)

Liquid biomass(sludge, manure, dung, digestate, industrial effl uents, algae, etc.)

High Pressure (250 to 300 bar)

Surplus renewable electricity + water

Electrolysis and anaerobic digestion

2040

2030

2020

2010

Anaerobic digestion

Pyrogasifi cation

Hydrothermal gasifi cation

Power-to-Gas

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Power-to-GasPower to Gas makes it possible to transform unconsumed electricity, particularly surpluses produced by intermittent energies such as wind or solar power, to produce hydrogen through water electrolysis. The hydrogen can then either be injected directly into networks or combined with carbon dioxide (CO2) via an anaerobic digestion process to produce synthetic methane (syngas) which can be injected into existing networks.

Je roule aubioGNV

2Hydrothermal gasifi cationHydrothermal gasifi cation makes it possible to treat liquid biomass waste and residues such as wastewater treatment plant sludge, effl uents from industrial activities (paper mill, food processing, etc.), livestock waste or digestate from anaerobic digestion. It consists of heating the liquid biomass at high pressure (250 to 300 bar) and at high temperature (between 400 and 700 °C). The chemical reaction in this process converts the carbon in the biomass into a renewable, methane-rich gas. Je roule au

bioGNV

2

Anaerobic digestionAnaerobic digestion enables organic materials such as livestock waste, green waste, crop residues or household biowaste to be recovered. It consists of the decay of organic matter in the absence of oxygen. This process produces a renewable gas, biogas, which can be purifi ed into biomethane and injected into the network, and digestate, a residue that can be substituted for chemical fertilizers.

Several renewable gas activities at diff erent levels of maturity are expected to develop further

Pyrogasifi cationPyrogasifi cation makes it possible to treat currently unrecovered or under-recovered solid waste, such as plastics, used wood, tyres or solid recovered fuels. It consists of heating this waste to very high temperatures (between 800 and 1,500 °C), with little oxygen and without combustion, to break down the material into diff erent gas molecules.

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(24) Biomethane, hydrogen or mixed networks

Recovered inputs

Conversion processes

Maturity of technology,regulations, market

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50 512020Statement of non-fi nancial performance GRTgaz

In terms of pyrogasifi cation, the activity has reached a stage of technological maturity suffi ciently advanced to plan for the construction of the fi rst industrial-scale facilities in the coming years, with widespread roll-out after 2023. By 2028, sector players consider that the injected gas produced by pyrogasifi cation processes could enable the recovery of almost half a million tonnes of waste per year, and the injection of 1 TWh of gas into the networks. GRTgaz partners several leading "forward-looking" projects on the topic, and in 2019 committed to new projects such as Titan V or alongside Syctom (household waste management provider in Ile-de-France), in support of its Cométha initiative.

In terms of anaerobic digestion, as part of the 2017-2020 corporate project, the objectives set for 2020 for the sites connected to the GRTgaz network were exceeded to meet the upsurge in the biomethane injection activity. In 2020, 21 biomethane injection sites are in service on the GRTgaz network (vs. 12 in 2019) and produce 698 GWh/year of renewable gas. GRTgaz has 21 biomethane producer customers. The feed-in tariff (2011 decree) has actively contributed to the development of the activity and many projects have achieved completion thanks to the fi nancial security provided by this feed-in tariff . In 2020, 214 sites across all networks inject biomethane, representing 3.9 TWh/year of production capacity.

The involvement of all GRTgaz departments enabled us to develop internal procedures, technologies for connection, reinforcement and injection and

commercial services, to meet the requirements of producer customers. In the national register of project capacities, there are 1166 projects representing 26.5 TWh/year, 163 of which are for GRTgaz, representing 6.8 TWh of annual production capacity.

Given the rapid deployment of biomethane, with 90 new producer customer connections to the transmission network expected by 2023, a specialised cross-functional unit will be set-up in Cormontreuil in Marne, in the heart of the “biomethane valley”. A dozen or so people from the Technical, Operations and Projects and Engineering departments will meet on a temporary basis to work on biomethane projects. The aim is to optimise travel and multi-activity fi eld operations and forge links between departments to share and leverage skills in this industrial rollout phase. Furthermore, a test platform for injection stations has been

installed in Saint-Herblain for pre-delivery injection station testing. It has been a success in streamlining biomethane stations and accelerating their delivery.

The objective for the number of backhaul stations has not been achieved, despite the 2020 commissioning of two units (Noyal Pontivy and Pouzauges), as well as the construction of a third unit in Chessy, to be commissioned in early 2021. The commissioning of the backhaul stations by GRTgaz was postponed due to the phase-in of the “right to inject” regulatory framework in 2019. Nine backhaul stations are under construction for commissioning in 2021-2022. The dynamic remains positive with the acceleration of biomethane development, and the number of stations will rise substantially in the next few years.

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Biomethane

Biomethane production capacities connected to the transmission network in GWh/year 650 GWh/year 128 GWh/year 250 GWh/year 434 GWh/year 698 GWh/year

Number of sites connected to GRTgaz network 16 new sites 3 7 12 21

Number of backhauls commissioned 5 backhauls 0 0 2 2

Forward-looking projects concerning the development of renewable gases across the regions

Number of forward-looking projects initiated across the regions

30 forward-looking projects 8 18 28 32

Launch of the "Greenfi n" Eiff el Gaz Vert fund, €210 million dedicated to renewable gases. (FRANCE FINANCE VERTE)

The Eiff el Gaz Vert fund was launched in February 2020. Its contributors include asset manager Eiff el Investment Group, Banque des Territoires, GRTgaz, the European Investment Bank, ADEME Invertissement and Société Générale Assurances. The fund intends to actively participate in developing the renewable gas activity in France and Europe, by supporting project sponsors. With a budget of over €210 million, the fund aims to help fi nance between 50 and 100 anaerobic digestion units over the next fi ve years. With a commitment of €40 million, GRTgaz is the second largest contributor to Eiff el Gaz Vert. The fund was awarded the Greenfi n label established by the French Minister for Ecological and Inclusive Transition, which guarantees the ‘green’ nature of the investment fund and is awarded to fi nancial players acting on behalf of the common good through transparent and sustainable practices.

Analysis of exploitable deposits for thepyrogasifi cation activity in Ile-de-France TERRITOIRE VAL DE SEINE

In 2020, GRTgaz conducted a study to assess the exploitable deposits in Ile-de-France for thermochemical activities, including pyrogasifi cation for injection into networks. This study was sponsored by ADEME Ile-de-France and aims to identify the deposits and their possible exploitation, in line with the regional planning tools (regional waste prevention and management plan, regional biomass scheme). The results will shed light on the potential for pyrogasifi cation projects in the Ile-de-France region.

Anaerobic digestion

Pyrogasifi cation

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(25) Metropolitan agency for household waste

Titan V: an industrial demonstrator for converting waste into gas 100% Made in FranceTERRITOIRE CENTRE ATLANTIQUE

In 2020, GRTgaz, Leroux & Lotz Technologies and Terrawatt achieved a key milestone by installing an industrial demonstrator in Pays de la Loire to produce renewable gas by combining two technologies: biological anaerobic digestion and pyrogasifi cation. Called Titan V, this innovative process is part of the regional eff orts to develop the circular economy by producing sustainable, controllable and storable energy from local unrecovered or under-recovered resources such as wood waste, solid recovered fuels, wastewater treatment sludge, etc. GRTgaz is supporting the project, notably by verifying the conformity of the gas and the capacity of the process to supply low-carbon gas that can be injected into existing natural gas networks.

COMETHA project: innovation for better waste and effl uent recovery in Ile-de-FranceTERRITOIRE VAL DE SEINE

GRTgaz has become a partner of Syctom25 as part of the Cométha project. Syctom and Siaap (Greater Paris sanitation authority) launched a joint project for the treatment of wastewater treatment sludge and the residual organic fraction of household waste. In this framework, GRTgaz and Syctom will share their expertise on the conversion of wastewater sludge and household waste into renewable gases and on connection of renewable gas activities (anaerobic digestion and pyrogasifi cation). Over time, the aim is to recover some of the 7,500 tonnes of household waste managed daily in Ile-de-France by Syctom as sustainable energy that can be injected into gas transmission networks, in a circular economy approach.

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52 532020Statement of non-fi nancial performance GRTgaz

On a European scale, gas infrastructure operators including GRTgaz are combining their eff orts to develop hydrogen in line with the EU strategy for a climate-neutral Europe. In July 2020, GRTgaz and ten other gas infrastructure operators in nine Member states presented their plan and vision for the development of a European

"hydrogen backbone". According to this study, the gradual emergence of a hydrogen network from the middle of the decade is possible, potentially reaching an initial aggregate network length of 6,800 km by 2030 and interconnecting Europe’s Hydrogen Valleys.

Regionally, the overall record for local and regional future projects is very positive, with 32 projects launched between 2017 and 2020, when the initial objective was 30. The objectives were exceeded thanks to the collective eff orts of our in-house teams29. Over four years, and working closely with stakeholders across all the regions, GRTgaz developed

innovative projects and studies which have helped build a fi rm footing for gas in the energy and ecological transition (waste and circular economy) across France’s regions.

In terms of hydrothermal gasifi cation, promising strides have been made. The technology is under development with a fi rst pre-industrial 2 MW capacity pilot in Europe developed by SCW Systems in Alkmaar, Netherlands. GRTgaz is helping to raise awareness of this technology with regional players and published a study on its potential in France26

in October 2019. It also supports a pre-feasibility study for a fi rst pilot project in the CARENE regional authority (Association of Saint Nazaire local communities).

In terms of hydrogen transmission, in May 2020 GRTgaz and CREOS announced the launch of the mosaHYc hydrogen conversion project (Moselle Sarre HYdrogène Conversion). It aims to convert two existing natural gas pipelines to transport hydrogen, interconnecting Völklingen, Perl (Sarre), Bouzonville and Carling (Moselle). This ground-breaking agreement between two gas TSOs will thereby contribute to developing a regional cross-border hydrogen ecosystem between three countries and demonstrate the possible industrial-scale conversion of the grid to enable the transport of hydrogen.

Pilot project: Hydrothermal gasifi cation demonstrator TERRITOIRE CENTRE ATLANTIQUE

In 2020, alongside CARENE (Association of Saint Nazaire local communities), GRTgaz initiated a feasibility study for a hydrothermal gasifi cation demonstrator as part of the Pact on the ecological and industrial transition of the Loire estuary, supporting the conversion of the Cordemais coal-fi red power plant. Today, the project is supported by ADEME27 Pays de Loire, CEREMA, the centre for studies on risks, environment, mobility and land management and the Agence de l’Eau Loire Bretagne water authority.

In terms of hydrogen mixed in the networks, GRTgaz adopted a position very early on the connection between gas and electricity via hydrogen, Power to Gas, by launching the Jupiter 100028 demonstrator at the COP 21 in 2015. The fi rst stone was laid in December 2017 in Fos-sur-Mer (Bouches-du-Rhône). The demonstrator was commissioned in 2020. It is a good example of a pilot project for interconnecting the networks to build an energy system, one of the focus areas of the GRTgaz Smart Grid roadmap.

In 2020, GRTgaz received 30 requests from hydrogen

producers to connect projects of all kinds for syngas and hydrogen injection. The fi rst pre-feasibility investigations are complete or in progress. Over time, these requests could result in gas injections to the network in addition to biomethane injections, making another step towards carbon neutrality. GRT has continued leading the consultation group to defi ne the rules of access to the networks for hydrogen producers, bringing together gas transmission system operators, public sector agencies, communities, representatives of the hydrogen sector, OEMs and gas consumers. To preserve

network safety and ensure no current gas consumers suff er negative eff ects, areas appropriate for the injection of hydrogen mixed with other gases will be pre-identifi ed, especially for sponsors of injection projects. These areas will be progressively extended in line with the results of the R&D eff orts and as equipment is replaced.

Details of the mosaHYc pilot projectto convert gas pipelines to hydrogen TERRITOIRE NORD-EST

In 2020, GRTgaz and its German TSO counterpart CREOS launched the mosaHYc project to convert existing gas pipelines to hydrogen. It aims to convert the existing natural gas pipelines to transport 100% hydrogen, and interconnect Völklingen, Perl (Sarre), Bouzonville and Carling (Moselle). The 70 km-long network will off er a transmission capacity potentially reaching 20,000 m3/h. The mosaHYc project has also been recognised and selected as one of the 40 key projects of the Grand Est regional authority’s revitalisation plan, known as Business Act.

Details of a study on the potential of H2, CO2 and O2TERRITOIRE RHÔNE-MÉDITERRANÉE

Hydrogen is a core component of the Energy and Innovation strategies of the Auvergne-Rhône-Alpes regional authority and that of GRTgaz. In 2020, GRTgaz and Tenerdis, a competitiveness cluster for the energy transition, mapped and assessed the regional dynamic for hydrogen. The results provide a map view of hydrogen, CO2 and oxygen production and consumption sites, both existing and planned. This study identifi es an East-West axis and a North-South axis, which meet in Lyon and concentrate most of the region’s hydrogen dynamic. Along these axes, the GRTgaz network could play a role in accelerating the carbon neutrality of industry with hydrogen gas.

FenHYx projectThe FenHYx platform in Alfortville aims to reproduce the functions of gas grids and in particular gas transmission networks: compression, expansion, measurement, analysis, injection loop, etc. Trials at a range of pressures and concentrations of hydrogen and methane will enable the testing, assessment, and certifi cation of innovative new gas production processes, including hydrogen, and equipment innovations. Opening up this platform to other operators (European gas TSOs, equipment makers, etc.) will assist in the emergence of the hydrogen activity. As the fi rst demonstrator of its type on a European scale, it was funded by the Ile-de-France regional authority to the tune of €440 k.

Hydrothermal gasifi cation

Injection of hydrogen mixed with other gases into networks

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Hydrogen transportJe roule aubioGNV

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(26) Technical and economic conditions for hydrogen injection into natural gas grids, 2019(27) French Agency for Ecological Transition

(28) For more information on Jupiter 1000, see 5.2.5 Smart Grids and Open data

(29) Regional teams from the General Secretariat and Business development department, renewable gases programme, Information system security department, RICE or the Innovation department

Germany

France

Luxembourg

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54 552020Statement of non-fi nancial performance GRTgaz

The energy networks open data platform initiative (ODRE)31

launched in January 2017 by RTE and GRTgaz aims to provide a single location for data sets on multiple energies, multiple operators, multiple scales, in order to facilitate the development and assessment of regional energy policies and to encourage the development of economic activities. Three years after it was launched, the net result is positive. Data availability remains stable and high.

Moving on from an initial situation in 2017 where the only data published were due to regulatory obligations, GRTgaz has provided much more in Open Data to meet the needs of regional stakeholders. The educational aspect of the provision of data is an essential component for GRTgaz. In 2020, ODRE partners launched Masterclass training for individual data users responsible for local and regional planning.

In terms of Smart Grid projects, the fi rst results of the West Grid Synergy demonstrator were published in September 2020. It is a showcase of the Smart Grid applied to gas networks, a forum for close collaboration between project partners, and an experimental location for bringing to light smart solutions for the benefi t of network performance.

5.2.3. Smart Grids and Open data

Description of risk: With the arrival of new gases and renewable energies, the energy transition is leading us to rethink the traditional centralised grid operation system. The Smart Grid puts digital technology at the service of industrial performance and the integration of renewable energies. Providing the right information at the right time for operators, and providing the means to use it are the fi rst cornerstones of this smart system. In the context of regional energy transition, free access to data and their interpretation represents a signifi cant issue.

Policy and resources implemented to reduce the risk: GRTgaz launched its Smart Grid programme and developed skills in Open Data jointly with other network operators, in order to provide multiple data sets to interested parties in support of their transition policies. The Smart Grid programme meets four objectives: develop smart grid projects, publish open data for stakeholders, disseminate the smart grid culture across the regions and to ecosystem30 stakeholders, and identify the need for digital solutions in adapting networks in 2030. The Open Data platform contributes to the smart grid programme.

2020 results and 4-year overview (2017-2020):

KPI 2020 objective

2017 result

2018 result

2019 result

2020 result

% data availability on the energy networks open data platform (ODRE)

99.9% 99.9% 99.9% 99.9% 99.9%

CLOSE-UP ON THEWEST GRID SYNERGY PROJECT

Key dates for the West Grid Synergy project

June 2017: Launch of West Grid Synergy projectJune 2018: Inauguration of biogas backbone in Mauges2019: Structuring of use cases and network instrumentationEnd 2019: Commissioning of backhauls in Pouzauges and PontivySept 2020: Publication of fi rst results, available onhttps://www.westgridsynergy.fr/2020-2021: Feedback from operation of backhaul, deployment of Smart grid solutions, ppportunity analyses

01

Biological anaerobic digestionproject in Combrand02

West Grid Synergy project SMILE03

ETIA pyrogasifi cation project in Compiègne 04

Pre-feasibility study on the mosaHYc pilot project to convert natural gas pipelines to carry hydrogen between France, Germany and Luxembourg

05

Consortium to launch the “Algues 4 Biométhane” GRTgaz project with UTC Compiègne, Uni Lassale Beauvais and the Hauts-de-France regional authority06

Jupiter 1000 project in Fos sur Mer07

Titan V project, phase 1 of gasifi cation project (anaerobic digestion on Leroux and Lotz gasifi er, with partner Terrawatt)08

NGV fuelling scheme in Ile-de-France with public transport operator RATP, to support the conversion of RATP bus depots to accommodate NGV buses by 2025

09

Feasibility studies for connection of the Sigeif NGV station to the port of Gennevilliers

10

Pyrogasifi cation project in partnership with SYCTOM on the Cométha project. Syctom and SIAAP launched a joint sludge treatment project11

MINERVE project phase 1 and 2catalytic methanation12

Gasifi cation R&D project in Lyon with INSAVALOR on biological anaerobic digestion

13

METHAGRID gasifi cation project on biological anaerobic digestion (between GRTgaz, Cristal Union, ARD, CEBB with technical universities Centrale Paris/Supelec and Agro Paris Tech)14

Pre-feasibility study for a hydrothermal gasifi cation demonstrator project undertaken with CARENE (Association of Saint Nazaire local communities)

Strasbourg

Lille

Bordeaux

Nice

Marseille

Lyon

ParisBrest

0111

12

13

14

02

05

06

07

08

09

10

03 04

6 partners3 trial regions

Morbihan

Pontivy

Les Mauges

Pouzauges

Vendée

Maine-et-Loire

GRTgaz network

(30) Smile, Flexgrid, Institut Smart Grid, Think Smart Grid, SER and CSF

(31) https://opendata.reseaux-energies.fr/

Studies / Agreements

Projects / Pilots

32 forward-looking projects

Statement of non-fi nancial performance GRTgaz54

Ensemble, rendre possibleun avenir énergétique sûr, abordable et neutre pour le climat

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56 572020Statement of non-financial performance GRTgaz

Beyond the signing of contracts, GRTgaz leads the award-winners network founded in 2020 jointly with the Richelieu Committee. GRTgaz organises periodic follow-up of former winners and project sponsors. The aim of the network is to promote innovation and forge stronger bonds with the award-winners.

5.2.4. Open Innovation

Description of opportunity: Innovation is the core issue in the transformation of GRTgaz. In this respect, the aim of Open Innovation is to develop solutions to issues affecting its activities through collaborative innovation, i.e working alongside innovative external partners. This system also enables the creation of value shared with micro-businesses and SME across the regions, supporting their business growth.

Policy and resources implemented: Since 2016, GRTgaz has opened its participative innovation process to all types of external structures such as start-ups, SME, micro-businesses, laboratories. This is the Open Innovation Factory. Activity-specific calls for projects are developed each year with organisations and partnerships are formed to patent, develop and test the selected solutions. Award-winners can implement their solutions within GRTgaz and come into contact with other players in the sector, while watching their visibility increase.

Partners of the Open Innovation Factory include the Richelieu Committee32, Paris&Co33, the Paris chamber of commerce and industry, RaiseLab34 & Inwibe35. They take part in Open Innovation Factory judging panels and publicise GRTgaz calls for projects to their members.

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

% of micro-businesses and SME amongst the nominees at the Open Innovation Factory Challenges 80% 87% 82% 83% 75%

HIGHLIGHTS Consignity36 (with the GRTgaz

purchasing department): “Optimise the receiving of deliveries to depots” - Call for projects in 2017

Several connected containers deployed (8 in 2019, 15 in 2020) across the country. GRTgaz enjoys a trusted relationship with Consignity, resulting in the signature of a framework agreement this year.

Sparklab and Aktan37 (with Business development department): “Make NGC accessible to the public” - Call for projects in 2019 Linking of two innovative businesses via the Open Innovation Factory to conduct an opportunity analysis, with the aim of more widespread access to NGV and enabling GRTgaz to analyse proposed service offerings to develop the activity.

Catalyse: GRTgaz and Catalyse signed their first business agreement to maximise the injection of hydrogen into the pipelines of the existing gas transmission network, by developing a protective coating against the effects of hydrogen. Catalyse is a business located in La Ciotat. It was awarded the project by GRTgaz for its innovative coating solutions for pipelines and using a robotised system to apply it on curved surfaces.

Since 2016, GRTgaz has launched 25 calls for projects 19 partnerships have been concluded with SME, micro-businesses, start-ups, laboratories and colleges. Almost €861,000 has been invested. In 2020, the Open Innovation Factory issued 6 calls for projects (see list of projects opposite).

The 2020 edition was impacted by the health crisis. Our teams were able to adapt and reinforce their communication and targeting to achieve an application rate similar to previous editions. In 2020, 75% of the nominees for the Open Innovation Challenge awards were SME or micro-businesses.

The objective expressed in the 2017-2020 CSR action plan, i.e 80% in 2020, was not achieved. This is explained by the more specific and technical calls for projects issued this year, which led to higher participation of laboratories and universities.

Optimisation of the grid and our work methods by improving corrosion detection and the realism of safety exercises

Corrosion detection How to facilitate the detection of corrosion in above-ground pipelines using smart coatings?

Ensuring the industrial safety of our infrastructures Remote network inspectionHow to remotely detect sources of gas leaks on the network?

Fostering the development of new gas activities (biogas) through “high pressure purification” High pressure purification How to purify a syngas at high pressure?

Realism of security exercisesHow to increase the realism of safety simulation exercises for our gas infrastructures?

Influence of alternating currentsHow to control the influences of alternating currents on our network?

Pipe connectionsHow to anticipate possible pipeline movements when cutting during connection operations?

(32) The Richelieu Committee is a professional association bringing together SMEs active in Innovation and Growth(33) Paris&Co is the Paris area agency for business development and innovation(34) Joint venture between RAISE and Schoolab, a strategic partner for collaborative projects between start-ups and large groups(35) Smart open innovation platform

(36) For more information, see https://youtu.be/_eXdJMjrYgY(37) For more information, see http://impulsiongnv.com/

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6. Conducting our business in consultation with stakeholders

6.1. Integration and acceptability of infrastructures

Description of risk: Until recently, the rejection of gas infrastructures was primarily a result of fears raised by the planned infrastructure (safety risks, visual impact, destruction of land, disruptions caused by works), today this rejection focuses more on the poor image from which gas suffers, as a fossil fuel. Challenges, and even legal proceedings against certain projects, reflect this reluctance. Progressively and as with all renewable energies, the expressions of opposition to new renewable gas production projects increase with the industrial rollout of the activity.

Policy and resources implemented to reduce the risk: Certain construction sites have impacts on local surroundings and entail a consultative approach between GRTgaz and the parties concerned. The approach is formally defined in a process designed to manage the impacts and relationships with stakeholders, implemented each time a project so requires. Depending on the project, administrative and public enquiry processes are implemented. GRTgaz strives to secure the acceptance of each stakeholder before building infrastructures, to ensure the project is more easily accepted and integrated.

The Avoid - Reduce - Compensate approach is essential to the acceptability of projects. The most sensitive sectors cannot always be avoided, which means that compensatory measures are taken, particularly in terms of the environment, whose effects are often only felt in the long term. These commitments are negotiated with accredited bodies and if they concern the preservation of biodiversity, must be presented to the National council on the protection of nature (CNPN) which expresses an opinion. This opinion is likely to be referred to in prefectoral orders imposed on GRTgaz for long periods, up to several decades: “Order of exemption from the prohibition of destruction of protected species and their habitats” GRTgaz has set up a programme to manage these commitments, which are overseen by DREAL the Regional Environment, Development and Housing Agency. To ensure its commitments are met, GRTgaz forms partnerships with a variety of recognised organisations, such as natural space conservation agencies, environmental protection associations (LPO) and has signed a long-term monitoring agreement with CDC Biodiversité.

KPI 2017 result 2018 result 2019 result 2020 result

Number of active projects affected by legal action 2 2 1 0

2020 results and 4-year overview (2017-2020):

For the past few years, we have been observing a larger number of challenges to certain projects, through local resident associations or environmental protection associations. This increased environmental sensitivity in civil society is generating greater vigilance on the part of government departments. Between 2017 and 2019, two projects led to legal proceedings: the Eridan project and the Landivisiau project. In agreement with the French Energy Regulatory Commission CRE, GRTgaz decided to shut down the Eridan project. As the single market was created on November 1st 2018, given the lack of construction of combined cycle gas plants in the South of France, and the uncertainties over higher capacities in LNG terminals and

interconnections with Spain, the project was no longer considered as justifiable. Concerning the Landivisiau project, the Conseil d’Etat confirmed the public benefits of the gas pipeline. The construction of the plant connection pipeline in 2020 did not meet with open opposition from local residents. In 2020, no new projects were impacted by legal action. The global health crisis in 2020 led to the postponement of many projects to 2021.

This situation underlines the importance for GRTgaz to maintain consultations and dialogue at local level, with civil society and national environmental groups. More generally, it demonstrates the need for GRTgaz to communicate more effectively with its stakeholders on the place

of gas in France’s security of energy supply and its assets for a successful energy transition. Moreover, and as with all renewable energies, the expressions of opposition to new renewable gas production projects progressively increase with the industrial rollout of the activity. GRTgaz contributes to dialogue on these questions of acceptability, at local level with its regional offices for projects concerning the GRTgaz network, or at national level as part of certain partnerships.

Bretagne Sud trunk line

Importance of dialogue at local and national level

1

2

1 2

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6.2. A responsible labour policyDiversity, career development and employee focus are key components of the GRTgaz labour policy.

Policy and resources implemented to reduce the risk: The 2017-2020 corporate project made diversity a priority area for development. On this basis, three diversity objectives are included in the profit-sharing agreement: recruitment of workers with disabilities on permanent and fixed-term contracts, the percentage of women in work/study programmes and the percentage of women with permanent contracts.

GRTgaz supports all its employees with disabilities through the Hagir mission, which takes actions to guarantee their integration and retention in employment. 2020 was devoted to the deployment of the new agreement on integration and equal opportunities throughout the professional life of employees with disabilities. The provisions of this agreement were reviewed during Diversity

week. The Hagir mission is represented by seven correspondents in all departments. GRTgaz is undertaking extensive training and awareness-raising efforts, in particular with managers, to facilitate the integration of employees with disabilities.

GRTgaz encourages and strives to improve gender parity in its workforce, from recruitment right through employee careers, including in technical disciplines. An appraisal of the 2016-2018 collective agreement on gender equality was conducted in 2019. A transitional agreement on professional gender equality was signed on 19 August 2019 by the three employee representative bodies. Negotiations on a new 3-year agreement started in summer 2020 and are due to wrap up for signature in early 2021.

6.2.1. Promotion of diversity

Description of opportunity: GRTgaz considers diversity (inclusion, equality and gender mix) to be a key driver of its development. Diversity is a source of creativity and innovation for the company, and also a strong asset for attracting new talents.

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Employment rate38 (employees listed as having a disability) 6% 5.6% 6% 6.2% 6.2%

Gender equality index 79 94

Percentage of women in workforce (permanent contract) 24% 24.42% 25.38% 25.6% 24.7%

Percentage of women in the Management Committee39 35% 37% 34.8% 35% 35.6%

Percentage of women in work/study programmes 40% 41.3% 46.4% 37.3% 37.8%

Diversity: In 2020, GRTgaz secured the renewal of the Diversity Label issued by French standards authority Afnor, after initially obtaining certification in 2015. This label rewards the commitment shown by GRTgaz to prevent discrimination, ensure equal opportunities and promote diversity over the previous years. The perception of diversity has progressed and behaviours have evolved positively within the company. Multiple actions have contributed to this progress.

The “Eclairages” series co-produced by GRTgaz teams is a good example. In 16 episodes, it addresses discrimination topics to promote mindfulness and question employee behaviours and beliefs concerning diversity.

The GRTgaz women's network “Les Elles du réseau” was established in 2010. It is also one of the actions contributing to promoting equality and gender balance across the company.

The “Les Elles du réseau” network contributes to Elles Bougent40, encouraging young women to choose technical and scientific studies.

This partnership with the Elles Bougent association involves 32 GRTgaz employees as mentors in many events aimed at female students to promote their awareness of technical and engineering professions. When female students on work/study programmes join GRTgaz, they benefit from an internal mentor programme, a close relationship with an experienced female employee, who supports and counsels them. Each year, multiple national or local events are held, such as construction site visits, presentations of professions, sports events, etc. In 2020, the “Elles” celebrated their tenth anniversary. The results in percentage of women in the workforce are positive. The objectives for the percentage of women in the

workforce and Management Committees were reached. In 2020, women represent 38% of work/study employees and 27% of executive committee members. In 2020, GRTgaz achieved a result of 94 / 10041 for the gender equality index, an increase of 15 points over 2019. Actions were taken on increases in return from parental leave, one of the five criteria of the index, which explains this result.

In terms of disabilities, the 2020 objective for the employment rate of workers with a recognised disability was reached and stabilised. In 2020, seven fixed-term employment contracts were signed and four interns as well as four agency workers with disabilities were welcomed. For 2020, GRTgaz lists 110 employees as having disabilities, compared to 99 in 2019.

(38) Percentage reflecting our Agefiph declaration (integration of external purchases and premiums for certain types of contracts and/or disabilities). This result is for 2019 as the 2020 result only becomes available in the second half of 2020.(39) The Management Committees of all GRTgaz departments.(40) “Elles Bougent” is a not-for-profit association established in 2005, the aim of which is to encourage female students in schools and universities towards engineering occupations.(41) 19 points above the minimum level set by the government and in this case, requiring a corrective plan. “Eclairages” series

of films on diversity

1

1

2

2

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2020 results and 4-year overview (2017-2020):

KPI 2017 result 2018 result 2019 result 2020 result

% of respondents to employee opinion survey recommend GRTgaz as a good place to work (survey conducted every two years) ND 85% 85% 89%

In 2020, multiple meetings with employee representatives took place: 11 sessions of the central works council, 7 sessions of the central health & safety and workplace conditions committee.

Several important discussions took place in 2020, including the paid leave - rest day agreement signed during lockdown, which generated €300,000 in donations to charity associations. Following the last representative elections and the setting-up of social and economic committees, an agreement on the career path of posted employees was also concluded. In total, 10 agreements were signed in 2020 and two remain under discussion for finalisation in early 2021.

GRTgaz chose not to propose part-time employment for its employees in 2020. This decision is a position adopted by the Group and more widely by the electric and gas industries, with the aim of controlling the possibility of authorised paid leave (e.g. care of children under 16.) Each employee benefiting from this authorised paid leave individually contributed 15% in the form of annual leave, rest days, unpaid leave, and/or, exceptionally, days saved on their time saving accounts. This measure is part of the objective to ensure the efforts made are shared between the company and the employees. In 2020, GRTgaz conducted an employee satisfaction survey. 89% of respondents would

recommend GRTgaz as a good employer, an increase of 4 points over 2018. Employees are satisfied with their working conditions and the company’s management of the Covid-19 situation was very well perceived. The areas for improvement underlined by the survey include a more robust feedback culture and performance assessment system, and the need to reconcile the perceptions of our future vision between head office and the field.

6.2.3. Labour relations and employee focus

Description of opportunity: Labour relations and employee focus are core components of the company’s human resources policy.

Policy and resources implemented: Labour relations are governed by the GRTgaz labour relations policy. To encourage employee focus, GRTgaz conducts an internal satisfaction survey every two years to monitor trends in employee perception of their company, its strategy and its management. Labour relations are a core factor in the GRTgaz human resources policy.

HIGHLIGHTS Covid-19 health crisis in France:

GRTgaz and its employees donated €300,000 to national support associations To mark their support for care workers and for the most vulnerable populations subject to the Covid-19 pandemic, GRTgaz and its employees decided to donate €300,000 split equally between the Fondation Hôpitaux de Paris - Hôpitaux de France, social aid associations Secours populaire français and Emmaüs France. This decision follows on from a collective agreement with labour organisations on paid leave and rest days during the Covid-19 health crisis.

“This gesture demonstrates the generosity of GRTgaz employees in their support of charitable organisations such as Emmaüs France, the Fondation Hôpitaux de Paris - Hôpitaux de France and Secours populaire français, which have been heavily involved during the Covid-19 crisis. Through high-quality dialogue with labour organisations, we can therefore firmly and effectively express our values of solidarity and public service,” comments GRTgaz CEO Thierry Trouvé.

2020 results and 4-year overview:

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

Work/study programme rate 8% 5.86% 5.53% 7.31% 8.54%

Number of work/study trainees hired 170 106 166 151 200

Percentage of employees receiving training Not applicable 81.4% 80% 83.6% 60.6%

Due to the Covid-19 pandemic, many scheduled training sessions were postponed then cancelled for those which could only be completed face to face, causing a significant fall in training hours completed. Where possible, all courses were held remotely.

In total, 47,475 hours of training were provided to 1,859 employees in 2020.

In terms of work/study programmes, the results are positive with the objective exceeded. To encourage the

insertion of young persons in difficulty due to the health crisis, GRTgaz launched a “Jeunes” operation offering almost 100 opportunities for internships, fixed-term contracts and work/study programmes.

By the end of 2020, 200 recruitments had been made to work/study programmes, with a work/study rate of 8.54%.

6.2.2. Career development and promotion of work/study programmes

Description of opportunity: For GRTgaz, developing skills and internal mobility is a condition for employee well-being and their continued commitment to the company. Renewing skills is a key challenge in adapting the company. Work/study programmes represent one answer to this challenge.

Policy and resources implemented: GRTgaz is pursuing an active policy to support its employees throughout their careers and enabling each of them to realise their full potential. The company encourages the professional development of our employees by offering a multitude of training options, plus functional and geographical mobility within the company, the ENGIE and SUEZ groups and companies in the electric and gas sectors.

Work/study programmes are of paramount importance for GRTgaz as it wishes to transmit its know-how, anticipate specialised recruitment needs in future years and operate an active diversity policy. GRTgaz supports students on work/study programmes for up to 3 years (depending on the qualification) and offers genuine perspectives for employment and career progression. Each year, a portion of these students is offered a permanent contract.

GRTgaz supports students on work/study programmes for up to 3 years

1

1

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Over the past four years, the customer satisfaction rate remained very high. In 2020, 98% of customers responding to the survey had a positive image of GRTgaz and were satisfied. In 2020, GRTgaz launched a “Client au Coeur” (“Customer at heart”) initiative to develop a customer-centric culture for all GRTgaz employees. This approach will indirectly contribute to improving customer satisfaction through an enthusiastic attitude, clear

information and solidarity, which form the foundations of GRTgaz relationships.

Over the past four years, the Concertation Gaz initiative has been a GRTgaz’ trademark in its customer signature, which will probably need to be reinvented in the new context of renewable gases. The need for consultation is evolving to include renewable gases.

In 2020, the market players in the Concertation Gaz initiative met 17 times to discuss multiple topics concerning market supply and operations42. Completing the construction of the TRF single marketplace in 2018 is one area where the Concertation Gaz initiative fully played its role.

6.3. A gas transmission network serving consultation and customer satisfaction

2020 results and 4-year overview (2017-2020)Description of risk: As an independent transmission system operator (ITO) certified by the French Energy Regulatory Commission (CRE), GRTgaz guarantees transparent and non-discriminatory conditions of network access to its customers and the confidentiality of commercially sensitive information. Continuity and quality of service are strong commitments in the GRTgaz public service agreement.

CLOSE-UP

on IS portal availability for customer activities

The results for IS portal availability for customer activities are positive. In 2019, the French Energy Regulatory Commission (CRE) deemed this availability to be sufficient for GRTgaz to no longer be required to publish this indicator. It still remains in use internally. For this reason, the 2020 indicator is now that of 24/7 availability, while the indicator defined by the CRE did not include application operations. Most service interruptions are now due to these operations, which confirms that the transition to the cloud end 2019 is reinforcing the availability of GRTgaz portals.

HIGHLIGHTS Introduction of the single

marketplace zone on 1st November 2018Since 2018, France has operated a single marketplace, the TRF or Trading Region France. It has a single trading point for gas: the PEG. This trading area created by GRTgaz and Teréga is the result of the efforts to develop the gas market, starting back in 2005. An additional benefit for consumers is a more competitive market in France, interconnected with European and Global marketplaces, with a reinforced security of supply. The construction of the gas market in France was facilitated by the Concertation Gaz initiative, through a specific work group involving shippers, TSOs and the CRE.

Supporting customers in orienting their energy mix towards net zero carbon The ramping up of net zero carbon requirements expressed by GRTgaz customers is manifested in the rising number of renewable gas producer customers and the creation of net zero carbon roadmaps by consumer customers. By creating work groups focusing on new renewable gases (hydrogen injection, pyrogasification, biomethane) GRTgaz is bolstering support for future business activities and enabling new customers to have their say. The business activity of GRTgaz is therefore increasingly focussed on two goals: deliver operational services for third party access to the network (injection, routing and delivery), and support our customers in transforming their energy mix to net zero carbon.

Policy and resources implemented to reduce the risk: In accordance with CRE's decision on consultative bodies on the rules of access to natural gas transmission networks published on 18 September 2008, GRTgaz and Teréga co-chair a joint consultative initiative with all market players: “Concertation Gaz”. It brings together representatives of natural gas transmission network users (suppliers, traders, industrial operators, gas-to-power producers and adjacent infrastructure operators) with the CRE. This arrangement strengthens the initiative already launched by natural gas TSOs to listen to customer requirements.

Quality of service is part of GRTgaz’ commitment in its public service agreement. Measuring customer satisfaction depends on several appraisal factors:

the overall image of GRTgaz, offerings and missions, application of the Code of good conduct, business relations, Information system performance, network operation and the management of field works.

Quality of service indicators with rewards and penalties were defined with the Energy Regulatory Commission, such as the availability rate of user portals and open data platforms. The information GRTgaz provides to its customers, especially via Trans@ctions and SmartGRTgaz, is essential to the performance of their activities. GRTgaz monitors customer portals constantly to ensure high availability.

KPI 2017 result 2018 result 2019 result 2020 result

Number of Concertation Gaz meetings 22 15 17 17

% of overall customer satisfaction 99% 96% 98% 98%

Average annual availability rate of user portals and public data platforms

Portal availability rateT@ = 99.96%

Smart availability rate = 99.93%

Portal availability rateT@ = 99.93%

Smart availability rate = 99.96%

Portal availability rateT@ = 99.75%

Smart availability rate = 99.89%

Portal availability rateT@ = 99.92%

Smart availability rate = 99.82%

Satisfaction level by category of customer

98% of our customers have a “very good image” and a “fairly good image” of GRTgaz 98% in 2019 and 96% in 2018

Producer

Producer

2018

2019

2020

3

4

61

39

65

36

57

35

Shipper

2018

2019

2020

50

50

67

50

50

33

2018

2019

2020

1

1

1

53

45

43

46

54

56

Consumers

(42) For more information, see https://www.concertationgaz.com/

Distributors

2018

2019

2020

917

12

17

74

88

67 17

Fairly poor image

Fairly good image

Very good image

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The third edition of the supplier satisfaction survey was conducted in 2019. It confi rms a strong level of contractor satisfaction concerning collaboration with GRTgaz. Over 200 suppliers

comprising small, medium and large businesses were surveyed across all GRTgaz purchasing segments. Over 80% of suppliers are satisfi ed with the GRTgaz payment policy.

In 2020, GRTgaz made 97% of its supplier payments on time. To strengthen dialogue with its strategic suppliers, 85 Business reviews were conducted in 2020.

(44) Survey conducted every two years

(43) For more information, see 4.2. Ethics

6.4. Responsible supplier relationships

Description of risk: Through its commitments as set out in its purchasing policy, GRTgaz seeks to develop sustainable supplier relationships and to promote purchasing from the supported employment sector. Supplier satisfaction is a key component of this sustainability.

Policy and resources implemented to reduce the risk: Every two years, GRTgaz measures how satisfi ed its principal suppliers are through a supplier satisfaction survey, which also enables it to consider areas for improvement in the relationship. To develop a relationship of mutual respect with suppliers, GRTgaz is committed to respecting payment due dates, especially to small suppliers, and is encouraging its suppliers to use reverse factoring. This programme enables GRTgaz suppliers to simply and quickly obtain early payment of their invoices before the due date, at preferential fi nancial terms. GRTgaz also keeps a continuously watchful eye on businesses likely to become dependent on it (> 30% of revenue generated with GRTgaz). In 2018 GRTgaz introduced an ethics due diligence mechanism for suppliers alongside a supplier ethics charter43.

Business Reviews are a tool for managing GRTgaz relationships with strategic suppliers. These reviews are a forum for discussion between buyers, specifi ers and the strategic suppliers of GRTgaz, whereby they can discuss current events and the principal strategic orientations of each company, the outlook in terms of business for the coming year to off er the supplier as much visibility as possible, opportunities to improve performance identifi ed by contributors, or a review of the past year sharing feedback from GRTgaz departments and the supplier.

GRTgaz also aims to encourage professional insertion and reinsertion, by making a portion of its purchases from the supported employment sector.

2020 results and 4-year overview (2017-2020):

KPI 2020 objective 2017 result 2018 result 2019 result 2020 result

% of supplier satisfaction44 NA 76% 76% 77% 77%

Indicator 2020 objective 2017 result 2018 result 2019 result 2020 result

Purchasing from the supported employment sector, in € million €1.5 million 1.39 1.49 1.55 1.56

were satisfi ed with their collaboration with GRTgaz

77%

prefer working with GRTgaz than with other customers

50%

are satisfi ed with supplier payment arrangements, in terms of respect of payment schedules, terms and conditions and due dates

80% HIGHLIGHTS Membership of Lab-Pareto

since 2018 This Think & Do tank is a committed community of purchasing managers of large groups, directors of SME and micro-businesses who strive jointly to boost the creation of local/regional jobs in SME and micro-businesses, upgrade and transform relationships between large groups and SME and micro-businesses, and reinforce CSR strategies in member companies.

Under the 2017-2020 CSR action plan, GRTgaz set itself the objective of making €1.5 million in purchases from the supported employment sector by 2020, which is 25% more than the regulatory

requirement. This objective was exceeded despite the Covid-19 situation, which mechanically reduced the use of certain commercial services. Some of these purchases are made

directly by Facility Management companies Bouygues Entreprises et Services and Spie at the request of GRTgaz.

2019 Supplier satisfaction survey

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The past four years have marked a major change of direction in GRTgaz communication and its support of gas. Communication campaigns have enabled GRTgaz to help to promote and defending the use of gas, and to attract participants involved in renewable gas initiatives and projects (local government, agricultural sector, research centres, universities, entrepreneurs, etc.).

The perception of renewable gases and the role of GRTgaz in the energy transition with regional decision-makers is of paramount importance. In 2019, the fifth GRTgaz reputation/image survey46 was conducted on a sample of 600 decision-makers. The main results are as follows: for survey respondents, renewable gas is number 4 in the energy sources contributing to the energy transition with 80% of responses, behind hydropower (89%), wind

(89%) and solar (96%), but ahead of hydrogen (75%). 74% of regional decision makers (reputation/image survey) familiar with GRTgaz consider that the company makes a useful contribution to the energy transition, compared to 10% who think the opposite and 16% without an opinion.

6.5. Promoting the image of gas to stakeholders

Description of risk: Due to being a fossil fuel, gas suffers from an image that seems increasingly less compatible with the energy transition. This perceived linkage with fossile fuels may harm the development of renewable gases. GRTgaz must help to alter this perception.

Policy and resources implemented to reduce the risk: The aim of GRTgaz is to ramp up its briefings of stakeholders (national and local/regional decision makers, customers, etc.), and to support the image of gas in the energy transition, especially through the assets of renewable gases and their positive externalities for the community (circular economy, waste recovery, support to agriculture, net zero-carbon industry and transport, complementarity of energies, etc.).

Deployment of a global campaign promoting renewable gases: In its media communications, GRTgaz has strongly affirmed its commitment to supporting the image of gas, especially the development of renewable gases. Since 2017, GRTgaz has developed a communication campaign entitled “Le Gaz. L’Energie des Possibles” (“Gas. The Energy of Possibilities”) to promote all the potential of renewable gases and new gas uses (mobility, industry, etc.). At the end of 2020, GRTgaz launched a new communication campaign to foster collective action to promote renewable gases with influencers, younger generations and public opinion. Under the slogan “Nous sommes les gaz renouvelables” (“We are renewable gases”), this campaign embodies the company’s new corporate purpose and carries its ambition to support the development of renewable gases in France through greater collective awareness of their multiple benefits for our planet, our country, our regions, our environment and our quality of life. Based on a digital learning experience gazenergiedespossibles.fr, this campaign aims to foster debate about the nation’s future energy mix, encourage dialogue from and with stakeholders committed to the development of renewable gases, and remind decision makers of the positive externalities of this energy of the future.

Media coverage of GRTgaz: In 2020, media visibility for GRTgaz amounts to 1,042 features in print and online media as well as audiovisual (compared to 1,211 in 2019). This decrease can be explained by the Covid-19 situation: the months between March and June and the month of October were particularly impacted, largely corresponding to lockdown periods in France. The regional press, online press and specialised energy press represent 72% of GRTgaz media coverage. Overall, three quarters of features concern the energy transition, gas mobility and hydrogen, as well as innovation.

2020 results and 4-year overview (2017-2020)

KPI 2017 result 2018 result 2019 result 2020 result

% of regional decision-makers seeing a role for renewable gas in the energy transition ND ND 80% 80%

% of regional decision-makers considering that GRTgaz is useful for the energy transition ND45 ND 74% 74%

Indicator 2017 result 2018 result 2019 result 2020 result

Number of GRTgaz appearances in print, web and audiovisual media 1,194 1,179 1,211 1,042

(45) This question appeared in the survey in 2019 (46) The survey is carried out every two years

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6.6. Dialogue and consultation with stakeholders

Description of risk: GRTgaz emphasises dialogue and attentiveness to stakeholders, as well as a consultative forum for a collective effort to create a sustainable energy system.

Policy and resources implemented to reduce the risk: GRTgaz interacts with multiple stakeholders, such as its employees47, its customers, its suppliers48, institutional partners49 and elected representatives (local and national government). GRTgaz also maintains close contact with members of civil society such as farmers and residents living near facilities and their representatives (especially agricultural associations), renewable gas activities and ecosystems (associations, public and private organisations, academic world, R&D, business, etc.) local and national associations (French federation of ramblers or Green Cross for example, as well as local and national public bodies (e.g regional nature parks, etc.).

GRTgaz leads or is involved with consultation efforts to better understand the needs of other players, ensure dialogue and reach mutually-beneficial agreements. GRTgaz leads gas consultation groups with customers, players in the gas sector and the French Energy Regulatory Commission to jointly develop the rules governing how the gas market operates in France50. 2020 sees it involved in the consultation efforts on the development of guidelines for biomethane and connection zones, under the right to inject, or the consultation on the 2020 gas outlook51. GRTgaz also leads collaborative and consultative efforts as part of the renewable gas activities, with significant development on the subject of hydrogen in 202052. GRTgaz is also committed to consultation initiatives53 as part of infrastructure projects enabling extensive dialogue with local stakeholders prior to the resolution of questions raised on the acceptability of future projects.

To maintain relationships which generate value shared with its stakeholders, GRTgaz builds partnerships with organisations of all kinds, providing sponsorship or joining trade associations, consortiums, business clusters, etc. Partnerships, sponsorships or memberships can be entered into with the aim of contributing to GRTgaz activities. They can also be a means of implementing the GRTgaz CSR policy to respond to issues shared with stakeholders concerning the environment, the regional focus, the energy transition and renewable gases, societal and human issues, etc.

In 2016, GRTgaz set up a stakeholder council to more effectively integrate the expectations of society and the issues of Corporate Social Responsibility. This body provides the GRTgaz CEO with further expert opinions on outside perception of the company’s activities and the understanding of the world in which it operates. The committee meets twice a year and meetings are attended by the CEO, the general secretary and the CSR director of GRTgaz. It has eight members:

Gilles Bœuf, Professor at UPMC, member of the Scientific committee on natural heritage and biodiversity advising the French minister for Ecology, Sustainable Development and Energy.

Claude Conrard, Director of public affairs France, Solvay.

Olivier Dauger, chairman of France gaz renouvelables and vice-president of FNSEA.

Paul DUPHIL, general secretary of OPPBTP. Pascale HEBEL, director of the consumption

department of Credoc. Nicolas Imbert, executive director Green

Cross France & Territoires. Bertrand Petit, president and founder of

Innocherche. Blanche Segrestin, chair of “Business theory”

at Mines ParisTech. Jean-Arnold VINOIS, advisor on European energy

policy.

2020 results and 4-year overview (2017-2020)

KPI 2017 result 2018 result 2019 result 2020 result

Spending in € million on sponsorship, partnerships (excl. R&D) €2.6 million €2.8 million €2.7 million €2.7 million

Indicator 2017 result 2018 result 2019 result 2020 result

Number of partnerships, sponsorships and memberships (excl. R&D) 182 238 255 262

In 2020, 262 stakeholder commitments in the form of memberships, partnerships and sponsorships were recorded, with over 50% directly in the regions. These commitments to stakeholder groups serve the strategic and societal objectives of GRTgaz and represented almost €2.7 million54 in 2020. New partnerships focus on the issues of the energy transition and contribution to achieving net zero carbon. For example, the 2020 partnership with France Nature Environnement, by which we will share knowledge about pyrogasification and prepare the arrival of the first units in the medium term, or joining the Net Zero Initiative, a project aiming to develop a whole new framework for action by organisations working ambitiously and transparently towards net zero carbon, or the Think Smart Grids, advocating the use of gas in the development of smart grids.

In 2020, the stakeholder council met twice and focused on:

Formulating the corporate purpose of GRTgaz and our manifesto,

Preparing the new 2021-2024 CSR policy, notably by identifying CSR issues and risks,

Providing an external view of the structure and content of the CAP24 future corporate project.

Four members of the stakeholder council assessed the GRTgaz 2018 statement of non-financial performance to identify strengths and areas for improvement, while four conducted the interview to update the materiality assessment.

(47) For more information, see 5.2. A responsible labour policy(48) For more information, see 5.4. Responsible supplier relationships(49) French Energy Regulatory Commission, government administrations and State representatives in regions where our network is deployed(50) For more information, see 6.3. A gas transmission network serving consultation and customer satisfaction(51) Every year, gas transmission and distribution system operators (GRDF, GRTgaz, Teréga and SPEGNN) must draw up a provisional multi-year assessment as per article L.141-10 of the Energy code. This assessment integrates changes in the production and consumption of renewable energy.(52) For more information, see 5.2. 2. (53) For more information, see 5.1. Integration and acceptability of infrastructures at regional level in consultation with local stakeholders

(54) The financial commitments shown do not include RICE partnerships

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7. Methods appendix 8. Report of Independent Third Party

This statement of non-financial performance sets out the approach adopted by GRTgaz in terms of corporate social responsibility and non-financial information meeting the requirements of articles L. 225-102-1 and R. 225-105-1 to R. 225-105-3 of the French Commercial Code.

Scope of GRTgaz statement of non-financial performance:The scope of the GRTgaz statement of non-financial performance covers France operations. GRTgaz produces two sets of financial accounts:

company accounts for the parent company GRTgaz S.A. under French standards, which meet the legal obligation (they are approved by ordinary general meeting of shareholders) and filed with the clerk of the commercial court (publication). It is for these accounts that we produce our management report (based on the company accounts) which is part of the statement of non-financial performance.

consolidated accounts for the GRTgaz group (GRTgaz and its subsidiaries) according to IFRS standards, meeting a contractual obligation. These accounts are intended for our shareholders, but are not published and are not associated with a legal obligation.

In effect, under the Third Directive, Elengy provides the financial information required to produce the consolidated accounts. GRTgaz has no operational control on how the business is managed. Elengy is therefore excluded from the scope of the GRTgaz S.A. statement of non-financial performance. Subsidiary Deutschland GRTgaz responsible for operating a regulated asset in Germany, is also not included in the 2020 report.

To the shareholders, In accordance with our status as a third party independent of GRTgaz, with COFRAC certification no. 3-10801, we hereby present our report on the consolidated statement of non-financial performance for the year ending 31 December 2020 (hereinafter the “Statement”), presented in the management report by virtue of the legal and regulatory requirements of articles L. 225-102-1, R. 225-105 and R. 225-105-1 of the French Commercial Code. Responsibility of the company

It is incumbent on the Board of directors to draw up a Statement compliant with legal and regulatory requirements, including a presentation of the business model, a description of the main non-financial risks, a presentation of the policies implemented to control these risks and the results of said policies, including key performance indicators.

The Statement was prepared in accordance with the company’s procedures (hereinafter referred to as “Reference Document”), significant extracts from which are presented in the Statement. Independence and quality control

Our independence is defined by the terms of article L.822-11-3 of the French Commercial Code and our professional code of ethics. Furthermore, we set up a quality control system integrating documented policies and procedures to ensure application of ethical codes, professional doctrine, applicable legislation and regulations.

Data collection procedure: CSR indicator data are collected for France operations by the CSR director. Each contributor reports the indicator to the CSR director for the period from January 1st to December 31st 2020. A reporting protocol is formally defined. 2020 is a year of results for GRTgaz in terms of the four years of its CSR action plan (2017-2020) and its GRTgaz 2020 corporate project (2017-2020). As the two projects were initiated before the materiality and risk assessment, certain risks and opportunities are not addressed in them.

Topics excluded:Concerning topics addressed by article R. 225-105-1 of the French Commercial Code, preventing food waste, preventing food insecurity, promoting animal well-being and a responsible, equitable and sustainable diet were considered as not applicable to GRTgaz. The activities of the company are not related to the production, sale or distribution of food products.For the 2020 report, the procedures for reporting non-financial indicators were audited by an independent third party, Grant Thornton.

Year ending 31 December 2020

Responsibility of the Independent Third Party

On the basis of our work, our role is to express a justified opinion, expressing a reasonably assured conclusion on:

the conformity of the Statement with the requirements of article R. 225-105 of the French Commercial Code;

the true and fair nature of the information provided by virtue of item 3° of section I and of section II of article R. 225-105 of the French Commercial Code, namely the results of policies, including key performance indicators, and actions taken to address the principal risks, hereinafter referred to as “the Information”.

However, it is not our role to form an opinion on:

the company’s observance of other applicable legal and regulatory requirements, especially in terms of vigilance and the fight against corruption and tax evasion;

the conformity of products and services with applicable regulations.

Nature and scope of our work

Our work described below was carried out in accordance with the requirements of articles A. 225-1 and subsequent of the French Commercial Code, determining the conditions under which the Independent Third Party conducts its mission and in accordance with the international standard ISAE 3000 - Assurance engagements other than audits or reviews of historical financial information.

We conducted work to assess the conformity of the Statement with regulatory requirements and the true and faire nature of the Information:

(1) The scope of certification is available on www.cofrac.fr.

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74 752020Statement of non-financial performance GRTgaz

we reviewed the activity of all the enterprises included in the scope of consolidation, and the expression of the main social and environmental risks associated with this activity;

we assessed the suitability of the Reference Document in terms of its relevance, completeness, reliability, neutrality and understandability, taking into consideration best practices of the sector where necessary;

we verified that the Statement covers each category of information stipulated in section III of article L. 225-102-1 of the French Commercial Code applicable to social and environmental data;

we verified that the Statement includes a justification for the absence of information required by point 2 of section III of article L.225-102-1 above;

we verified that the Statement presents the business model and principal risks associated with the activity of all entities within the scope of consolidation, including, when appropriate and proportionate, the risks generated by its business relationships, products or services, policies, actions and results, including key performance indicators;

we verified, when relevant to the principal risks or policies presented, that the Statement presents the information as stipulated by section II of article R. 225-105 of the French Commercial Code;

we assessed the process of selecting and validating the principal risks;

we enquired into the existence of internal check and risk management procedures;

we assessed the consistency of the results and applied key performance indicators with the principal risks and policies presented;

we verified that the Statement includes a clear and qualified justification of the absence of policies concerning one or more of these risks;

Means and resources

Our work required a 4-person team and was carried out between December 2020 and February 2021, with a total time spent of approximately four weeks. To assist us in completing our work, we requested the assistance of specialists in sustainable development and corporate social responsibility. We held interviews with the persons responsible for preparing the Statement.

Conclusion

On the basis of our work, we did not detect any significant anomalies which could affect the compliance of the statement of non-financial performance with the applicable regulatory requirements and the recognition that the information as a whole is presented in a true and fair way in accordance with the Reference Document.

Neuilly-sur-Seine, 9 March 2021

we verified that the Statement covers the consolidated scope, i.e all companies included in the scope of consolidation as required by article L. 233-16 with the limitations specified in the Statement;

we assessed the data collection process used by each entity to ensure the completeness and true and fair nature of the Information;

for the key performance indicators and other quantitative results we considered to be the most important,2 we implemented:

analytical procedures consisting in verifying the correct consolidation of data collected and the consistency of their trends;

detail tests based on samples, consisting in verifying the correct application of definitions and procedures, and reconciling data with supporting documentation. This work covered all the consolidated data for the key performance indicators selected for these tests;

we consulted documentary sources and held interviews to corroborate qualitative information (actions and results) that we considered to be the most important3;

we assessed the consistency of the whole Statement with our knowledge of the company.

We consider that the work completed while exercising our professional judgement enables us to form a reasonably assured conclusion; a higher level of assurance would have required more extensive verification work.

(2) Labour data: total headcount; % of employees receiving training, employee accident frequency rate; % of employees with disabilities; % of women; % of work/study employees. Environmental data: methane emissions; biomethane production capacities connected to the network; compression energy consumption; scope 1 and 2 CO2 emissions; number of stations converted to zero pesticides; number of sites where differentiated wayleave management experiments are conducted; % of waste recovery. Societal data: number of ethics-related incidents; number of active projects affected by legal action; number of third-party attacks on pipelines; % of regional decision-makers seeing a role for renewable gas in the energy transition; number of suppliers assessed by an external service provider; % of customer satisfaction. (3) Qualitative information: “Economic efficiency of the service delivered”; “Ethics”; “Smart Grids and Open Data”; “Open Innovation”; “Promotion of diversity”; “Dialogue and collaboration with stakeholders”.

Independent Third Party Grant Thornton

French member of Grant Thornton International

Tristan Mourre Director

Vincent Frambourt Associate

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76 Statement of non-fi nancial performance GRTgaz

Design and production: - Photo credits: Benjamin Béchet, Jerôme Cabanel, Jean-Lionel Dias, Jennifer Do Couto, Franck Dunouau, Philippe Dureuil, Julien Gazeau, Philippe Grollier, Vincent Krieger, Pierre-Olivier.